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 December 31 allowance for bad debts $ 88,100 (79,300) 92,000 $ 100,800 Required: a. Compute GK's bad debt expense for financial statement purposes. b. Compute GK's tax deduction for bad debts.