...

Wren Company had the following account balances at December 31, Year 5: Accounts receivable $900,000 Allowance for doubtful accounts (before any provision for Year 5 doubtful accounts expense-a credit $16,000 balance) Credit sales for Year 5 $1,750,000 Wren is considering the following methods of estimating doubtful accounts expense for Year 5: Based on credit sales at 2%. Based on accounts receivable at 5%. What amount should Wren charge to doubtful accounts expense under percentage of credit sales and percentage of accounts receivable, respectively