The Frendt Foodservice Center (FFC) recognizes bad debt expenses as .25% of total sales. When accounts are considered to be uncollectible they are written off against the “allowance.”

During 20X4, FFC had total sales of $1,500,000. In addition, FM Enter- prises has declared bankruptcy and it appears their account for $650 will be uncollectible.

1. Prepare the journal entry to record bad debt expense.
2. Prepare the journal entry to write off the FM Enterprises account