GK Company, a calendar year accrual basis taxpayer, made the following adjustments to its allowance for bad debts this year: January 1 allowance for bad debts Actual write-offs of accounts receivable Addition to allowance at year-end $ 87,000 (78,200) 90,900 $ 99,700 December 31 allowance for bad debts Required: a. Compute GK's bad debt expense for financial statement purposes. b. Compute GK's tax deduction for bad debts.