RECEIVABLES ALLOWANCE METHOD SHOW ALL WORK AND CALCULATIONS!!!!

1) Big Joe Mentalino, Inc. provides the following information for the year ended December 31:

Sales: $75,800,000

Sales Discounts: $600,000

Sales Returns & Allowances $1,200,000

Outstanding Accounts Receivable (at end of FY): $10,900,000

Allowance for Doubtful Accounts (before adjustments): $7,600 credit

Big Joe Mentalino uses the percent of sales method and estimates that 0.50% of NET SALES will be uncollectible.

A) Record the journal entry necessary at the end year to recognize bad debt expense.

B) At what amount would NET receivables be reported on the balance sheet?