Question 7 The records of Sarasota Company at the end of the current year shows Accounts Receivable $80,300; Credit Sales $769,390; and Sales Returns and Allowances $41,700. (a) If Sarasota uses the direct write-off method to account for uncollectible accounts and Sarasota determines that Matisse's $820 balance is uncollectible, what will Sarasota record as bad debt expense? Bad debt expense (b) If Allowance for Doubtful Accounts has a balance of $1,112 and Sarasota concludes bad debts are expected to be 11% of accounts receivable, what will Sarasota record as bad debt expense? Bad debt expense