Use the following information from financial statements of GTI Inc.

12/31/2009 12/31/2010

Accounts receivable, gross 75,000 60,000

Allowance for Uncollectibles 2,500 3,000

Advances from Customers 1,000 300

Revenue (gross) earned during 2010 238,500

Bad debt expense in 2010 4,000

1. Compute the amount of accounts receivable written off by GTI Inc. in 2010 (7 points). T-accounts with information missing are provided to help guide you.
2. Compute the amount of cash received from customers in 2010. GTI Inc. recognizes bad debt expense under SG&A expenses (not as a subtraction from revenue) (7 points).

Accounts Receivable 75,000 Allowance 2,500 Advances 1,000 60,000 3,000 300 Bad debt expense Cash Revenue 4,000 238,500