1. Using the following information: 12/31/15

Accounts receivable $525,000

Allowance (40,000)

Cash realizable value $485,000

During 2016, sales on account were $145,000 and collection on account were $100,000, Also during 2016, the company wrote off $5,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at $45,000.

Bad debt expense for 2016 is: