Refer to the situation described in BE 7–13. Answer the two questions assuming the company estimates that future bad debts will equal 10% of the year-end balance in accounts receivable.

Data from in BE 7-13

The following information relates to a company’s accounts receivable: gross accounts receivable balance at  the beginning of the year, $300,000; allowance for uncollectible accounts at the beginning of the year, $25,000  (credit balance); credit sales during the year, $1,500,000; accounts receivable written off during the year, $16,000; cash collections from customers, $1,450,000. Assuming the company estimates bad debts at an amount  equal to 2% of credit sales, calculate (1) bad debt expense for the year and (2) the year-end balance in the allowance  for uncollectible accounts.