Peterman Incorporated reported the following information in the accounts receivable section of thier end of year 2007 financial statements:

Accounts receivable 58,000

Allowance for doubtful accounts (22,900)

During 2008 the following occured:

1. Payment on accounts receivable was 777,000

2.Credit sales were 850.000

3.Write-offs of accounts receivable were 47,000

4.Net income was 103,000

Q1: Peterman records an annual bad-debt expense of 6% of their annual credit sales. what would be the bad debt expense for 2008?

Q2: What would peterman report for the allowance for doubtful accounts at the end of 2008?

Q3:What was the ending balance of accounts receivable in 2008?

Q4: If the write offs in 2008 would have been $57,200 (instead of 47,000) what would have been Peterman's 2008 net income?