On January 1,2016,Willett Company's Account Balances for Accounts Receivable and the Related

Essay

On January 1,2016,Willett Company's account balances for Accounts Receivable and the related Allowance for Uncollectible Accounts were $3,600,000 and $90,000,respectively.During the year,sales revenue totaled $40 million,of which 70% were credit sales and the remainder were cash sales.Altogether,cash collections from all customers amounted to $30 million.Also,write-offs of accounts deemed to be uncollectible totaled $250,000.At the end of the year,an analysis of aged accounts receivable indicated that 2% of total gross receivables may be uncollectible.
Required:
Determine the amount of bad debt expense for the year and net realizable value of receivables at the end of the year.