The following items were extracted from the financial records of Stein Glass Company. Sales $ 980,000 Accounts Receivable 1,025,000 Allowance for Doubtful Accounts 50,000 (cr.) After analyzing individual accounts, the company’s accountant wrote off $35,000 of accounts receivable as uncollectible, and then estimated, from historical data, that 4 percent of this year’s sales will be uncollectible. REQUIRED:

a. Prepare the entry to record bad debt charge.

b. Compute the final balance in the Allowance for Doubtful Accounts account.