Informataion related to accounts receivable is given:

At the beginning of the year PS Corp has a balance of $2,450,000 in accounts receivable and $220,000 in the allowance for doubtful accounts. Sales for the year were:

$ 1,62,38,307

Of this amount 70% were on credit. Cash payments on account were $12,905,000. Sales returns were $340,000. Accounts of $107,600 were written off but

$32,900 was subsequently recovered and collected. This $32,900 cash payment was in addition to the collections previousy mentioned.

At year-end, a review indicatioed that 8% of outstanding accounts receivable were uncollectible, but that there was no risk of further sales returns.

Required:

Show how net accounts receeivale would be reported on the statement of financial posisiton, and calculate bad dets expense for the year.

[15 marks]