Prepare journal entries on october of the current year

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Reference no: EM132975492

Recording and Determining the Effects of Bad Debt Transactions on Income Statement Categories Using the Percentage of Credit Sales Method
During the current year, Giatras Electronics recorded credit sales of $680000. 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.

a. On October 28 of the current year, an account receivable for $2,800 from a prior year was determined to be uncollectible and was written off.

b. At year-end, the appropriate bad debt expense adjustment was recorded for the current year.

Reference no: EM132975492

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