Michaels Sports sells sports gear and athletic wear. On January 1, 2021, Michaels had the following account balances:

Accounts Receivable $60,000

Less: Allowance for Doubtful Accounts (9,000)

Net Accounts Receivable $ 51,000

Record the following journal entries for Michaels Sports during January, 2021:

A. Michaels wrote off $12,000 in uncollectible accounts.

B. Michaels made credit sales of $300,000 and collected $240,000 of accounts receivable.

C. At the end of the month, Michaels determines that approximately 8% of its ending accounts receivable balance will not be collected. Michaels uses the percentage of receivables method of calculating bad debts. (Hint: You must update the accounts receivable balance and allowance for doubtful accounts balance before preparing this journal entry)

Debit Credit