Reference no: EM131821373

Asignment

The following information is taken from the 2013 annual report to shareholders of Hewlett-Packard (HP) Co.

	For Fiscal 2013	For Fiscal 2012
Provision for doubtful accounts	$ 29 million	$ 106 million
	At Fiscal Year-end 2013	At Fiscal Year-end 2012
Accounts receivable, net	15,906 million	16,437 million
Accounts receivable, gross	16,268 million	16,931million

During Burns Company's first year of operations, credit sales totaled $152,000 and collections on credit sales totaled $111,000. Burns estimates that bad debt losses will be 1.5% of credit sales. By year-end, Burns had written off $360 of specific accounts as uncollectible.

Required:

1. Prepare all appropriate journal entries relative to uncollectible accounts and bad debt expense. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Part 1

Record the entry to write off specific accounts

Part 2

Record the bad debt expense

2. Show the year-end balance sheet presentation for accounts receivable.