A large corporation recently reported the following amounts on its year-end statements of financial position:

A footnote to these statements indicated that the company uses a percentage of its credit sales to determine its bad debts expense, that $60,000 of uncollectible accounts were written off during 2015 and $80,000 of uncollectible accounts were written off in 2016, and that there were no recoveries of accounts written off.
Required:
a. Determine the amount of bad debts expense that must have been recorded by the company for 2016.
b. How were the company€™s net receivables affected by the write-off of the $80,000 of accounts in 2016?
c. How was the company€™s net earnings affected by the $80,000 write-off of accounts in 2016?

2016 2015 Accounts receivable Allowance for doubtful accounts $8,800,000 8,400,000 95,000 105,000