ZEJ, a calendar year accrual basis taxpayer, made the following adjustments to its allowance for bad debts this year: January 1 allowance for bad debts Actual write-offs of accounts receivable Addition to allowance at year-end December 31 allowance for bad debts $895,000 (840,000) 770,000 $ 825,000 a. Compute ZEJ's bad debt expense for financial statement purposes. b. Compute ZEJ's tax deduction for bad debts