Problem 2 (5 marks) You have the following information from the books of Sparks Inc.: Accounts receivable, January 1, 2020 $300,000 Credit sales recorded in 2020 Accounts written off in 2020 Credit sales collected in 2020 560,000 Allowance for doubtful accounts, January 1, 2020 3,000 (credit balance) 4,000 610,000 Accounts previously written-off and recovered in 2020 5,000 Required- Calculate bad debt expense under the following independent assumptions: 1- Sparks Inc. estimates that 2% of its credit sales will be uncollectible. 2- Sparks uses the aging method, and provided you with the following information: Days outstanding Amount % uncollectible 0-30 days $150,000 4% 31-60 days 47,000 7% 61-90 days 38,000 15% Over 90 days 11,000 30% Total $246,000