E6-8 Recording Bad Debt Expense Estimates and Write-Offs Using the Percentage of Credit Sales Method LO6-2 During the current year, Sun Electronics, Incorporated, recorded credit sales of $720,000. Based on prior experience, it estimates a 2 percent bad debt rate on credit sales. Required: Prepare Journal entries for each transaction: (if no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. On November 13 of the current year, an account receivable for $300 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. View transaction list Journal entry worksheet 1 2 Record the entry to write-off the uncollectible account. Note: Enter debits before credits. Transaction General Journal Debit Credit a. E6-11 Computing Bad Debt Expense Using Aging Analysis L06-2 Casilda Company uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due, $16,600, (2) up to 120 days past due, $7,400, and (3) more than 120 days past due, $2,800. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due to uncollectibility is (1 ) 3 percent. (2) 13 percent, and (3) 36 percent, respectively. At the end of the current year, the Allowance for Doubtful Accounts balance is $500 (credit) before the end-of-perlod adjusting entry is made. Required: What amount should be recorded as Bad Debt Expense for the current year? (Enter your answers as a whole percentage (1.0.0.12 should be entered as 12).) Aged Accounts Receivable Estimated Percentage Uncollectible Estimated Amount Uncollectible % % Not yet due Up to 120 days past on Over 120 days past due Estimated balance in allowance for doubtful accounts Current balance in allowance for doubtful accounts Bad Gott expense for the year