Mast Companys December 31 balances from the prior year related to accounts receivable follow.

Accounts receivable (Dr.)	$560,000
Allowance for doubtful accounts (Cr.)	28,000

During the current year, $63,000 of accounts receivable is considered uncollectible, and no more effort to collect these accounts will be made. Total sales for the current year are $1,680,000, of which $280,000 are cash sales. A total of $1,260,000 cash was collected during the current year from sales that were originally made on account.

Required a. Assuming that Mast applies the allowance method to estimate net accounts receivable and uses 9% of accounts receivable as its estimate of expected credit losses, prepare the (1) journal entries to record write-offs and to record bad debt expense for the current year, and (2) disclosure on gross and net accounts receivable on the balance sheet at December 31 of the current year.

b. How would your answers to part a change, if at all, assuming instead that the prior year December 31 balance in Allowance for Doubtful Accounts was a credit of $7,000?