Olson Corp. reported the following in the Current Assets section of its December 31, 2012,

balance sheet:

12/31/12 12/31/11

Accounts receivable, net of allowances

of $5,000 and $3,000, respectively $54,000 $48,000

During 2012, 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 2012 from sales on credit.

2. Determine the amount of bad debts expense for 2012.