XYZ Corporation sold goods worth $50,000 to its customers on credit during the year. At the end of the year, $10,000 of these sales were still outstanding. Additionally, XYZ Corporation wrote off $2,000 of uncollectible accounts during the year. Calculate the net accounts receivable and the bad debt expense for XYZ Corporation.

Requirement:

• Prepare a schedule showing the calculation of net accounts receivable.
• Explain the treatment of uncollectible accounts and its impact on the financial statements.