Reference no: EM13974130

Flyer Company has provided the following information for 2015 (prior to any year-end bad debt adjustment): -Total Sales, $600,000 (75% credit sales, 25% cash sales) -Selling and administrative expenses, $110,000 -Gross profit, $290,000 -Accounts receivable, $110,000 -2015 Beginning Balance, Allowance for doubtful accounts (debit balance), $1,200 1. Flyer estimates bad debt expense assuming that 1.5% of credit sales have historically been uncollectible. Prepare the journal entry to record Flyer's bad debt expense for 2015. 2.. Now assume that Flyer estimates bad debt expense as 10% of accounts receivable. Prepare the journal entry to record Flyer's bad debt expense for 2015. 3. In 2016 Flyer is able to recover $2,000 that was originally written off as uncollectible in 2015. Prepare the journal entries to record (1) the reversal of the write-off and (2) the collection of the cash