1. Sarasota Company has recorded bad debt expense in the past at a rate of 1.5% of accounts receivable, based on an aging analysis. In 2017, Sarasota decides to increase its estimate to 2%. If the new rate had been used in prior years, cumulative bad debt expense would have been $383,900 instead of $297,900. In 2017, bad debt expense will be $138,300 instead of $96,810. If Sarasota's tax rate is 30%, what amount should it report as the cumulative effect of changing the estimated bad debt rate?
2. The Sheffield, Inc. sold 10,830 season tickets at $2,130 each. By December 31, 2017, 16 of the 40 home games had been played. What amount should be reported as a current liability at December 31, 2017?