1. On December 31, 20X1, the company reported a debit balance of $100,000 in accounts receivable and a credit balance of $1,500 in the allowance for doubtful accounts. December 31 is the companys reporting date. During 20X2, the company had the following transactions:

a. The company made a credit sale of $400,000.

b. The company wrote off the uncollectible accounts for $14,000.

c. The company collected the receivable of $6,000 that had been written off previously.

Required (10 marks):

1. Prepare journal entries to record the above three transactions.

Assume that 1% of the companys accounts receivable cannot be collected, prepare journal entry to record bad debt expense at the end of 20X2.