The following items were extracted from the 2014 financial records of Cummins Inc. (dollars in millions):

Allowance for doubtful accounts 12 (cr.)

During the following year, assume the company writes off $5 of accounts receivable as un-collectible and then estimates $6 of the year’s receivables to be un-collectible. The company does not recover any previously written-off accounts.

a. Prepare the entry to record the bad debt expense.
b. Compute the final balance in allowance for doubtful accounts for the next year-end financial statement.