The balance of Accounts Receivable on 12/31/Xl is $700,000 and the unadjusted balance in the Allowance for Bad Debts account is a $4,000 debit. Bad debts are estimated at 5% of Accounts Receivable. During X2, wrote off $32,000 of bad debts. The balance of Accounts Receivable on 12/31/X2 is $820,000. Bad debts are estimated at 5% of Accounts Receivable