Prepare journal entries for transaction

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During the current year SBG Fuel Company recorded credit sales of $3,000,000.  Based on prior experience it estimates a 2 percent bad debt rate on credit sales.  The beginning balance for the current year for the Allowance for Doubtful Accounts was $70,000.

Required:

Prepare journal entries for each transaction:

a. On Sept 1 of the current year, an Accounts Receivable of $15,000 was determined to not be collectable and was written off.

b. On Oct 15 of the current year, an Accounts Receivable of $2,000 was determined to not be collectable and was written off.

c. At the end of the year the appropriate bad debt expense was recorded for the current year.

Reference no: EM132203805

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