Bad Debt: Percentage of Sales Method Practice 7-8

Bad debit expense is estimated using the percentage-of-sales method. Total sales for the year were $500,000. The ending balance in Accounts Receivable was $100,000. Historically, bad debts have been 3% of total sales. The economic circumstances of credit customers this year are about the same as they have been in past years. Total accounts written off as uncollectible during the year were $13,700. Make the necessary summary journal entries to record this bad debt-related information.

Submit your exercise in the assignment section by midnight Sunday, Week 2.