Exercise 5-67 Bad Debt Expense: Percentage of Credit Sales Method Bradford Plumbing had the following data for a recent year: Credit sales $547,900 Allowance for doubtful accounts, 1/1 (a credit balance) 8,740 Accounts receivable, 1/1 42,340 Collections on account receivable 489,770 Accounts receivable written off 14,250 Bradford estimates that 2.7% of credit sales will eventually default. Required: 1. Compute bad debt expense for the year (rounding to the nearest whole number). 9,314 X 2. Determine the ending balances in accounts receivable and allowance for doubtful accounts. Ending Balance Accounts receivable Allowance for doubtful accounts 86,220 3,804 X