J.David spiceland

The following information relates to a company's accounts receivable: beginning of the year. $300,000: allowance for uncollectible accounts at the beginning of the year, $25^000] (credit balance): credit sales during the year, $1, 500,000; accounts receivable written off during the year $16,000 cash collections from customers, $1, 450,000. Assuming the company estimates bad debts at an amount equal to 2% of credit sales, calculate (1) bad debt expense for the year and (2) the year-end balance in the allowance for uncollectible accounts. Refer to the situation described in BE 5-8. Answer the two questions assuming the company estimates that nature bad debts will equal 10% of the year-end balance in accounts receivable