Compute bad debt expense for each year using: $($a$)$ the percent of sales method assuming $1\%$ of net credit sales are uncollectible; and $($b$)$ the percent of accounts receivable method assuming $10\%$ of accounts receivable are uncollectible.

Using the percent of accounts receivable method, bad debt expense for $2019$ is$?$

Data

FYE $12/31/2018$

FYE $12/31/2019$

FYE $12/31/2020$

Sales $($all on account$)$

$$2,000,000$

$$4,000,000$

$$6,000,000$

Sales Discounts

Accounts Receivable

Allowance for

Doubtful Accounts

$$0$

None

$$200,000$

None

$$200,000$

$$400,000$

$$600,000$

$$10,000$

$$10,000$

Credit

Debit

$$50,000$

$$4,000$

Zero

$$30,000$

$$40,000$