Debra Company reports the following financial information for the year:

Accounts receivable:

Based on prior experience the management of Debra Company expects two percent of credit sales to be eventually written off.
Required
Determine the bad debt expense and the ending balance in allowance for uncollectible accounts for Debra Company assuming (1) the percentage-of-credit-sales method, and (2) the aging method.

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Credit sales $800,000 Allowance for uncollectible accounts (before adjustment) $(2,000)