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During the current year, Witz Electric, Inc., recorded credit sales of $800,000. Based on prior experience, it estimates a 2 percent bad debt rate on credit sales.
Required:
Question 1: 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. On September 29 of the current year, an account receivable for $1,700 from March of the current year was determined to be uncollectible and was written off.
b. The appropriate bad debt expense adjustment was recorded for the current year.
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