J. Peterman Incorporated reported the following information in the Accounts Receivable section of their

end of year 2001 financial statements:

Accounts Receivable $ 400,000

Allowance for Doubtful Accounts (37,200)

Peterman estimates that the amount of uncollectable receivables for the year will be:

2% for the accounts currently due within 30 days, 10% for the overdue 1 to 30 days,

40% for the 31 to 90 day overdue, and 70% for the >90 day overdue.

At the end of 2002 an analysis of the firms Accounts Receivable showed the following:

Currently due within 30 days $250,000

Overdue 1~30 days $ 65,000

Overdue 31~90 days $ 25,000

More than 90 days overdue $ 10,000

Total Accounts Receivable $350,000

1. [4 points] What would Peterman report for the allowance for doubtful accounts at the end of 2002 ?

b. [4 points] During 2002, Peterman wrote off accounts totaling $27,700. What would be the Bad Debt Expense for Peterman in 2002? Show your work.

c. [3 points] During 2002, Peterman had credit sales of $754,700. How much accounts receivable were paid off by customers during the year? Show your work