During Burns Company's first year of operations, credit sales totaled $158,000 and collections on credit sales totaled $114,000. Burns estimates that bad debt losses will be 1.5% of credit sales. By year-end, Burns had written off $390 of specific accounts as uncollectible.

Required:

1a. Record the entry to write off specific accounts.

1b. Record the bad debt expense

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