Sun€™s ledger shows the following account balances on December 31:

During 2013, Sun wrote off $12,500 of uncollectible accounts receivable, and reinstated $1,500 of previously written-off accounts receivable.
Requirements
1. Calculate the bad debt expense for 2013.
2. Calculate cash collections from accounts receivable assuming that all sales were on credit.

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2013 2012 Accounts Receivable Allowance for Doubtful Accounts Sales 530,000 450,000 18,000 26,500 3,500,0002,700,000