Information related to accounts receivable is given for two cases:
Case 1 Zhang Corporation used the credit sales method to estimate bad debt expense. In 20X3, the opening balance of accounts receivable was $ 320,500. Credit sales were $ 2,545,000 Collections during the year were $ 2,596,500. he opening balance of the allowance for doubtful accounts was $ 41,800. Accounts receivable of $ 34,200 were written of, and $ 2,100 of previously written of accounts were subsequently paid by the customer. his $ 2,100 is in addition to the $ 2,596,500 collections previously mentioned. Over time, 0.8% of credit sales have been uncollectible.
Case 2 Mobile Technology Limited reported an unadjusted balance of accounts receivable of $ 1,285,000 at 31 December 20X3, along with a credit balance in the allowance for doubt-ful accounts of $ 83,100 and an allowance for sales discounts of $ 6,000. At year- end, the company determined that an allowance of $ 12,500 for sales discounts was needed. hey also decided that $ 53,400 of accounts receivable were uncollectable and should be written of. Of the remaining receivables, it was determined that 40% were current, and of the remaining net current balance, an allowance for doubtful accounts of 3% of the net balance was needed. he remaining 60% of outstanding accounts receivable were past due and an allowance for doubtful accounts of 10% of the outstanding balance was needed.

Required:
For each case above, show how net accounts receivable would be reported on the statement of financial position, and calculate bad debt expense for the year.