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During 2014, Giatras Electronics recorded credit sales of $680,000. Based on prior experience, it estimates a 3.5 percent bad debt rate on credit sales.
Required:
Problem 1. Prepare journal entries for each of the following transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
a. The appropriate bad debt expense adjustment was recorded for the year 2014.
b. On December 31, 2014, an account receivable for $2,800 from a prior year was determined to be uncollectible and was written off.
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