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.

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.

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