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During 2014, Sun Electronics, Incorporated, recorded credit sales of $730,000. Based on prior
experience, it estimates a 2 percent bad debt rate on credit sales. Required: Prepare journal
entries for each transaction: (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 $380 from a
prior year was determined to be uncollectible and was written off.
Solution
The Journal entries for the given transactions are as follows:
Transaction General Journal Debit Credit
Bad debts expense adjustment Bad debts account (Expense) $14600
Bad and Doubtful debts (CA) $14600
Uncollectible amount Bad debts account (PL) $380
Particular Debtor account (CA) $380

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During 2014- Sun Electronics- Incorporated- recorded credit sales of $.docx

  • 1. During 2014, Sun Electronics, Incorporated, recorded credit sales of $730,000. Based on prior experience, it estimates a 2 percent bad debt rate on credit sales. Required: Prepare journal entries for each transaction: (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 $380 from a prior year was determined to be uncollectible and was written off. Solution The Journal entries for the given transactions are as follows: Transaction General Journal Debit Credit Bad debts expense adjustment Bad debts account (Expense) $14600 Bad and Doubtful debts (CA) $14600 Uncollectible amount Bad debts account (PL) $380 Particular Debtor account (CA) $380