Information related to accounts receivable is given:

At the beginning of the year, Health Products Corp. has a balance of $2,680,000 in accounts receivable and $250,000 in the allowance for doubtful accounts. Sales for the year were $18,900,000, of which 70% were on credit. Cash payments on account were $11,530,000. Sales returns were $420,000. Accounts of $102,700 were written off, but $27,500 was subsequently recovered and collected. This $27,500 cash payment was in addition to the collections previously mentioned. At year-end, a review indicated that 5% of outstanding accounts receivable were uncollectible, but that there was no risk of further sales returns.

Required:

Show how net accounts receivable would be reported on the statement of financial position, and calculate bad debt expense for the year.

(No additional data i.e. graph, table, etc... Question from Textbook)