The $2019$ and $2020$ sales and accounts receivable information for Velcary Company are shown below.

At the beginning of $2019,$ the AFDA account had a $$0$ balance. During $2019,$ sales for the year totalled $$1,200,000$

with $60\%$ on credit. At December $31$ year end, accounts receivable had a debit balance of $$55,000.$ Management

estimated that $0\mathrm{.}5\%$ of all credit sales would be uncollectible. The company wrote off $$3,100$ worth of accounts

receivable at the end of the year.

During $2020,$ sales totalled $$1,630,000$ with $60\%$ on credit. On December $31,2020,$ accounts receivable has a

debit balance of $$76,000.$ During the year, the company wrote off a number of accounts receivable, leaving the

allowance for doubtful accounts with a debit balance of $$4,500.$ The estimate for bad debt expense for the year

has not been determined or recorded. After reviewing the write$-$offs, the company decided that the estimated

percentage for AFDA should be increased from $0\mathrm{.}5\%$ to $0\mathrm{.}75\%$