A company uses the percent-of-sales method to estimate bad debt. It had total sales of $860,000 for the year. History indicates that they are typically unable to collect 3.5% of their total sales. Prepare the journal entry to record the adjustment for estimated bad debt.

Accounts and Explanation	Debit	Credit

A company sells equipment for $4,000. The equipment initially cost $22,000 and the company had recorded $20,000 in depreciation on it (the depreciation is up to date). Record the sale of the asset, including any gain or loss recorded on it.

Accounts and Explanation						Debit	Credit