Your company uses the allowance method to recognize bad debt expenses. This year, your company recorded...

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Your company uses the allowance method to recognize bad debt expenses. This year, your company recorded $2,000,000 of credit sales and had an ending accounts receivable balance of $800,000. Calculate the bad debt expense for the year assuming the company believes that 2% of credit sales will be uncollectible and the ending balance in the allowance for doubtful accounts is a credit balance of $2,500. Also calculate the balance of the allowance for doubtful accounts after the bad debt adjustment is made on December 31. Your company uses the allowance method to recognize bad debt expenses. This year, your company recorded $2,000,000 of credit sales and had an ending accounts receivable balance of $800,000. Calculate the bad debt expense for the year assuming the company believes that 2% of credit sales will be uncollectible and the ending balance in the allowance for doubtful accounts is a credit balance of $2,500. Also calculate the balance of the allowance for doubtful accounts after the bad debt adjustment is made on December 31.