During Burns Company's first year of operations, credit sales totaled $162,000 and collections on credit sales totaled $116,000. Burns estimates that bad debt losses will be 1.0% of credit sales. By year-end, Burns had written off $410 of specific accounts as uncollectible.

Required:

1.Prepare appropriate journal entries relative to uncollectible accounts and bad debt expense.

162,000*1.0%=1620 bad debt expense is 410