Following are the 2010 year-end balances before adjustments:
Accounts receivable (AR) ........ $ 80,000
Allowance for uncollectible accounts .. $ (2,000)
Net sales ............. $250,000
Using the percentage of sales method, the company estimates 3% of sales will become uncollectible. What is the bad debts expense for 2010? What will be the net realizable value of accounts receivable on the year-end balance sheet?