The accounting records of Diamond Ltd. show the following for 2019: $55,000 85,000 6,300 Accounts receivable, Jan. 1, 2019 Accounts receivable, Dec. 31, 2019 Allowance for doubtful accounts, Jan. 1, 2019 Bad debt expense before year end adjusting or closing entries, Dec 31, 2019 Customer accounts written off as uncollectible during 2019 3,400 Dr. 5,550 Additional information For 2019, cash sales were $970,000, while credit sales were $720,000. Recently, Diamond's management has become concerned about various estimates used in its accounting system, including those relating to receivables and uncollectible accounts. The company is considering two alternatives. For the purpose of comparing these two alternatives, the company has made the following estimates for each alternative. Alternative 1: Total bad debts approximating 0.7% of credit sales. Alternative 2: Aging of the accounts receivable at the end of the period, where 80% of accounts receivable would incur a 2% loss, while the remaining 20% would incur a 9% loss. Required: For each of the two alternatives listed above, calculate the bad debt expense for 2019 and the allowance for doubtful accounts balance at the end of 2019. (8 marks)