BAD DEBT EXPENSE: PERCENTAGE OF CREDIT SALES METHOD Gilmore Electronics had the following data for a recent year:

Cash sales $ 26,700 Credit sales 428,600 Accounts receivable determined to be uncollectible 6,300 Gilmore uses the allowance procedure to record bad debt expense. The firm’s estimated rate for bad debts is 2.15 percent of credit sales.

Required:

. Prepare the journal entry to write off the uncollectible accounts.

. Prepare the journal entry to record bad debt expense Exercise