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During Burns Company's first year of operations, credit sales totaled $158,000 and collections on credit sales totaled $114,000. Burns estimates that bad debt losses will be 1.5% of credit sales. By year-end, Burns had written off $390 of specific accounts as uncollectible. Required:
Problem 1. Construct all appropriate journal entries relative to uncollectible accounts and bad debt expense.
Problem 2. Show the year-end balance sheet presentation for accounts receivable
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