During Burns Companys first year of operations, credit sales totaled $140,000 and

collections on credit sales totaled $105,000. Burns estimates that bad debt losses will

be 1.5% of credit sales. By year-end, Burns had written off $300 of specific accounts

as uncollectible.

Required:

a. Prepare all appropriate journal entries relative to uncollectible accounts and bad

debt expense.

b. Show the year-end balance sheet presentation for accounts receivable.