Regarding No. 2 question, how come not $33400+23000-16000

The answer is $33400-$25000+$16000

The following information relates to a companys accounts receivable: 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 that future bad debts will equal 10% of the year-end balance in accounts receivable.

1. Calculate the year end balance in the allowance for uncollectible accounts. Answer: $33400

2. Calculate bad debt expense for the year.