P 7-2 Uncollectible Accounts Amdahl Corporation manufactures large-scale, high performance computer systems. In a recent annual report, the balance sheet included the following information (dollars in thousands): Current Year Current assets: Receivables, net of allowances of $5,042 and $6,590 in the previous year 504 , Previous Year $580,640 In addition, the income statement repolted sales revenue of $2, 158,755 ($ in thousands) for the current year. All sales are made on a credit basis. The statement of cash flows indicates that cash collected from customers during the cunent year was $2,230,065 (S in thousands). There were no recoveries of accounts receivable previously vuitten off Required: 1. 2. Compute the following (dollar amounts in thousands): a. The amount of uncollectibles mitten off by Amdahl cluing the cunent year. b. The amount of bad debt expense that Amdahl would include in its income statement for the cunent year. c. The approximate percentage that Amdahl used to estimate uncollectibles for the cunent year, assuming that is uses the income statement approach. Suppose that Amdahl had used the direct write-off method to account for uncollectibles. Compute the following (dollar amounts in thousands): a. The accounts receivable information that would be included in the year-end balance sheet. b. The amount of bad debt expense that Amdahl would include in its income statement for the cunent year.