E6-11 (Algo) Determining Financial Statment Effects of Bad Debts Using the Percentage of Credit Sales Method LO6-2 During the current year, Sun Electronics, Incorporated, recorded credit sales of $690,000. 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 recelvable for $390 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: Indicate the effects of the transactions in the following table. Indicate the accounts affected and enter decreases to account categories with a minus sign. Accounts receivable Administrative expense Allowance for doubtful accounts Bad debt expense Bank service charge expense Cost of goods sold Income tax expense Interest revenue Sales discounts Sales returns and allowances Interest revenue Sales discounts Sales returns and allowances Sales revenue Selling expense