On December 31, 2017, Flanders Corporation had the following account balances related to credit sales and receivables prior to recording adjusting entries:

Allowance for Doubtful Accounts	$15,000	Credit (normal) balance
Sales Revenue (all credit sales)	$750,000
Accounts Receivable	$285,000

Compute the adjusted balances for bad debts expense and for the allowance for doubtful accounts under each of the following assumptions (the two questions are INDEPENDENT): (please show work)

1. An aging of accounts receivable is completed. It is estimated that $36,800 of the receivables outstanding at year-end will be uncollectible.

Bad Debts Expense	Allowance for Doubtful Accounts (adjusted balance)

2. It is estimated that 2% of credit sales for the year will prove to be uncollectible. (Note that this is an independent problem relative to #1 above).

Bad Debts Expense	Allowance for Doubtful Accounts (adjusted balance)