Kansas Furniture Mart had sales of $1150,000 during 2015, including $600,000 of sales on credit. Balances on December 31, 2015, were Accounts Receivable, $120,000, and Allowance for Doubtful debts, $10,000. For 2015, collections of accounts receivable were $560,000. Uncollectible account expense was estimated 2% of credit sales, as in previous years. Write-offs of bad debts during 2015 were $9,000.

Required:

a. Prepare journal entries concerning the preceding information for 2015.

b. Show the ending balances of the balance sheet accounts on December 31, 2015.

c. Based on the given data, would you advise Eleanor Sarkowski, the president of the store, that the 2% estimated doubtful debt rate appears adequate?

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