Pessimist Inc. had credit sales totalling $4,900,000 and $5,100,000 for the years ended December 31, 2009 and 2010, respectively. Information on trade accounts receivable for the company is presented below.

The balance of the allowance for doubtful accounts as of January 1, 2009 was $5,000. In addition, you learn that the company wrote off specific accounts of $6,500 in 2009, and the bad debts expense was $8,000 in 2010.
Required:
a. Determine the bad debts expense for 2009.
b. Determine the amount of receivables written off during 2010.
c. Prepare the journal entry to record the bad debts expense for 2009.

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Current 30-60 61-90 Over 90 Balance in accounts receivable, Dec. 31, 2009 400,000 150,000 40,000 10,000 Balance in accounts receivable, Dee. 31, 2010 40,000 160,000 30,000 20,000 of receivables estimated to be uncollectible 0.5% 196 2% 5%