During the current year, Sun Electronics, Incorporated, recorded credit sales of $790,000. Based on prior experience, it estimates a 2 percent bad debt rate on credit sales.

a. On November 13 of the current year, an account receivable for $420 from a prior year was determined to be uncollectible and was written off.

b. At year-end, the appropriate bad debt expense adjustment was recorded for the current year.

Required:

Using the following categories, select the effects of the above transactions. Use + for increase and for decrease and indicate the accounts affected and the amounts.

Transaction	Assets		Liabilities		Stockholders Equity
a.	Accounts receivable
	Allowance for doubtful accounts
b.	Allowance for doubtful accounts