receivables outstanding for 2005 & 2006. What might explain the change? Problem 1: For 2007, Stadler Corporation has cash sales of $385 million, credit sales of $649 million, and Income Before Taxes of $213 million. At the end of 2007, the balances of gross accounts receivable and allowance for doubtful accounts were $295 million and $15 million respectively. No bad debt expense has been recorded this year. a. Assuming Stadler uses the receivables approach to determine the amount of bad debt expense, prepare the journal entry to record bad debt expense for 2007. Stadler determined that historically uncollectible accounts are 8% of accounts receivable