During the year ended December 31, 2015, Kellys Camera Shop had sales revenue of $160,000, of which $80,000 was on credit. At the start of 2015, Accounts Receivable showed a $10,000 debit balance and the Allowance for Doubtful Accounts showed a $580 credit balance. Collections of accounts receivable during 2015 amounted to $66,000.

Data during 2015 follow:

a.	On December 10, a customer balance of $1,400 from a prior year was determined to be uncollectible, so it was written off.
b.	On December 31, a decision was made to continue the accounting policy of basing estimated bad debt losses on 2 percent of credit sales for the year.

Required:

1.

Give the required journal entries for the two events in December. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Journal Entry Worksheet

Record the write-off of a certain customer account from a prior year which is not collectible totaling $1,400.

Record the estimated bad debt losses at 2 percent of credit sales for the year.

Date

General Journal

Debit

Credit

Dec. 10, 2015	Bad Debt Expense		14,000

*Enter debits before credits

Kellys Camera Shop
Balance Sheet (partial)
At December 31, 2015
Current Assets:

	Kellys Camera Shop Income Statement (partial) Year ending December 31, 2015 Operating Expenses: