Question: Olson Corp. reported the following in the Current Assets section of its December 31, 2016 balance sheet: During 2016, Olson recorded $80,000 of sales on

Olson Corp. reported the following in the Current Assets section of its December 31, 2016 balance sheet:

During 2016, Olson recorded $80,000 of sales on credit and wrote off $4,000 of uncollectible accounts.
Required
1. Determine the amount of cash collected during 2016 from sales on credit.
2. Determine the amount of bad debts expense for 2016.

12/31/16 12/31/15 Accounts receivable, net of allowances of $5,000 and $3,000, respectively $54,000 $48,000

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