At the end of the prior year, Durney's Outdoor Outfitters reported the following information.

Accounts Receivable, Dec. 31, prior year
Accounts Receivable (Gross) (A)	$	48,067
Allowance for Doubtful Accounts (XA)		8,384
Accounts Receivable (Net) (A)	$	39,683

During the current year, sales on account were $304,423, collections on account were $289,850, write-offs of bad debts were $6,969, and the bad debt expense adjustment was $4,685.

Required:

1-a. Complete the Accounts Receivable and Allowance for Doubtful Accounts T-accounts to determine the balance sheet values. Disregard income tax considerations.

1-b. Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the income statement for the current year.

1-c. Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the balance sheet for the current year.

During the current year, Witz Electric, Inc., recorded credit sales of $1,300,000. Based on prior experience, it estimates a 1 percent bad debt rate on credit sales.

Required:

Prepare journal entries for each transaction: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

a. On September 29 of the current year, an account receivable for $4,000 from March of the current year was determined to be uncollectible and was written off.

b. The appropriate bad debt expense adjustment was recorded for the current year.