Brief Exercise 5-44 Write-Off of Uncollectible Accounts King Enterprises had 27 customers utilizing its financial planning services in 2019. Each customer paid King $25,000 for receiving King's assistance. King estimates that 2% of its $675,000 credit sales in 2019 will be uncollectible. During 2020, King wrote off $2,700 related to services performed in 2019. Required: 1. Prepare the journal entry to record the defaulted balance. Record write-off of defaulted account 2. Prepare the adjusting entry to record the bad debt expense for 2019. Record adjusting entry for bad debt expense estimate Exercise 5-67 Bad Debt Expense: Percentage of Credit Sales Method Bradford Plumbing had the following data for a recent year: Credit sales Allowance for doubtful accounts, 1/1 (a credit balance) Accounts receivable, 1/1 Collections on account receivable Accounts receivable written off Bradford estimates that 2.7% of credit sales will eventually default. $547,900 8,740 42,340 489,770 14,250 Required: 1. Compute bad debt expense for the year (rounding to the nearest whole number). 2. Determine the ending balances in accounts receivable and allowance for doubtful accounts. Ending Balance Accounts receivable Allowance for doubtful accounts