During 2014, Sun Electronics, Incorporated, recorded credit sales of $5,000,000. Based on prior experience, it estimates a 2 percent bad debt rate on credit sales.

Required:
Prepare journal entries for each transaction:
a. The appropriate bad debt expense adjustment was recorded for the year 2014.
b. On December 31, 2014, an account receivable for $98,000 from a prior year was determined to be uncollectible and was written off.