Bad Debt Expense: Percentage of Credit Sales Method

Gilmore Electronics had the following data for a recent year:

Cash sales

Credit sales

$$135,000$

$512,000$

$9,650$

Accounts receivable determined to be uncollectible

The firm's estimated rate for bad debts is $1\mathrm{.}35\%$ of credit sales.

Required:

Prepare the journal entry to write off the uncollectible accounts. If an amount box does not require an entry, leave it blank.

$($Record write$-$off of defaulted account$)$

Prepare the journal entry to record the estimate of bad debt expense. If an amount box does not require an entry, leave it blank. If required, round your answers to the nearest dollar.

$($Record adjusting entry for bad debt expense estimate$)$

If Gilmore had written off $$3,000$ of receivables as uncollectible during the year, how much would bad debt expense reported on the income statemer have changed? Enter decrease, if any, as negative amount. If an amount is zero, enter $"0".$

Conceptual Connection: If Gilmore's estimate of bad debts is correct $(1\mathrm{.}35\%$ of credit sales$)$ and the gross margin is $20\%,$ by how much did Gilmore income from operations increase assuming $$150,000$ of the sales would have been lost if credit sales were not offered?