Required Information Learning Objective 07-06 Describe how to estimate the allowance for uncollectible accounts and introduce the CECL model. [The following information applies to the questions displayed below.) The balance sheet approach determines bad debt expense by estimating the appropriate carrying value of accounts receivable to be reported in the balance sheet and then adjusting the allowance for uncollectible accounts as necessary to reach that carrying value. The income statement approach estimates bad debt expense based on the notion that a certain percentage of each period's credit sales will prove to be uncollectible. Estimating the Allowance for Uncollectible Accounts-Income Statement Approach Knowledge Check 01 Rode Company estimates bad debt expense at 1% of credit sales. The company reported accounts receivable of $100,000 and a pre- adjustment credit balance in its allowance for uncollectible accounts account of $2,000 at the end of the current year. During the current year, Rode's credit sales were $2,000,000. What is the amount of the company's bad debt expense for the current year? Bad debt expense