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During Burns Company's first year of operations, credit sales totaled $140,000 and collections on credit sales totaled $105,000. Burns estimates that bad debt losses will be 1.5% of credit sales. By year-end, Burns had written off $300 of specific accounts as uncollectible.
Required:
a. Prepare all appropriate journal entries relative to uncollectible accounts and bad debt expense.
b. Show the year-end balance sheet presentation for accounts receivable.
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