Kelly Klothing Designs started the cur-rent year with the following account balances related to its customer accounts:

Kelly reported credit sales of $ 1,253,000 for the current year and recorded sales returns and allowances of $ 41,200 (sales value). Assume the sales were on account. The company collected $ 56,000 on account and determined that a $ 35,000 account due from Cruze Company was uncollectible.
Required
Prepare the journal entries required for each of the following events:
a. Credit sales and sales returns for the current year. Ignore the effects on cost of goods sold and inventory.
b. Cash collections for the year.
c. The write- off of the Cruze Company account.
d. The current year€™s provision for bad debts, assuming that Kelly estimates bad debts at 4% of net credit sales.
e. The current year€™s provision for bad debts, assuming that Kelly estimates bad debts at 15% of ending accounts receivable. Ignore part d.

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Accounts Receivable Beginning Balance 560,000 Allowance for Uncollectible Accounts 145000 Beginning Balance