Hello,

Please review 1 #2, I think requisition #1 is correct but the #2 . Please correct and explain.

During Burns Company's first year of operations, credit sales totaled $170,000 and collections on credit sales totaled $120,000. Burns estimates that bad debt losses will be 1.5% of credit sales. By year-end, Burns had written off $450 of specific accounts as uncollectible. Required: 1. Prepare all appropriate journal entries relative to uncollectible accounts and bad debt expense. 2. Show the year-end balance sheet presentation for accounts receivable.

Journal entry worksheet

• Record the entry to write-off specific accounts.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
1	Bad debt expense	2,550
	Allowance for uncollectible accounts		2,550
	Allowance for uncollectible accounts	450
	Accounts receivable		450

Journal entry worksheet

• Record the bad debt expense.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
2	Accounts receivable	50,000
	Allowance for uncollectible accounts		(2,100)
	Accounts receivable	47,450