Percentage of Credit Sales}

Roeker Company provides information systems consultation services to large companies in the Chicagoland area. Due to a dip in the economy, Roeker has increased the percentage of credit sales that it believes will be uncollectible from \(3.0 \%\) to \(3.2 \%\) for 2018 . Roeker's consulting services provided revenues of \(\$ 700,000\) in 2018 . During 2018 , Roeker has write-offs of \(\$ 750\) related to goods purchased in 2017. Prior to the write-off for the \(\$ 750\) default, Roeker's accounts receivable and allowance for doubtful accounts balances were \(\$ 480,000\) and \(\$ 232\) (credit), respectively.

\section*{Required:}

1. Prepare the journal entry to record the defaulted account.

2. Prepare the adjusting entry to record the bad debt expense for 2018.

\section*{OBJECTIVE 4 Brief Exercise