During 2014, Sun Electronics, Incorporated, recorded credit sales of $710,000. Based on prior experience, it estimates a 2 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.	The appropriate bad debt expense adjustment was recorded for the year 2014.
b.	On December 31, 2014, an account receivable for $420 from a prior year was determined to be uncollectible and was written off.