Heller Corporation has aged its accounts receivable and estimated uncollectible accounts as follows (in thousands)

Sales for Heller last year were $XX and this year were $YY

Age of Receivables	Balance	Estimated % uncollectible
Current	$11,000	1%
30-60 days past due	$2,400	4%
61-90 days past due	$1,300	5%
Over 90 days past due	$840	10%
Total	$15,540

a. Calculate the allowance for uncollectible accounts.

b. Assume that in addition to your allowance calculation, $240 thousand was written off during the current year. (i) What is the bad debt expense for the year? (ii) what is the amount of net accounts receivable shown on the balance sheet.

c. Someone in your office was involved with determining the above %s used to estimate the uncollectibles. Someone else in your office had estimated lower percentages, which would have resulted in a lower allowance, therefore a higher income. Given you are the manager who is put in a positon to decide on the allowance, why would you choose one of these estimates and why would you not choose the other?