More Info 213 Dec. 31 Estimated that bad debts expense for the year was 1% of credit sales of $430,000 and recorded that amount as expense. The company uses the allowance method. 31 Made the closing entry for bad debts expense. 2014 Jan. 17 Sold inventory to Malcom Monet, S600, on account. Ignore cost of goods sold. Jun. 29 Wrote off Malcom Monet's account as uncollectible after repeated efforts to collect from him. Aug. 6 Received $600 from Malcom Monet, along with a letter apolog zing for being so late. Reinstated Monet's account in full and recorded the cash receipt. Dec. 31 Made a compound entry to write off the following accounts as uncollectible: Brian Kemper, $1,600; May Milford, $1,500; and Robert Ronson, $400. Estimated that bad debts expense for the year was 1% on credit sales of $500,000 and recorded the expense. Made the closing entry for bad debts expense. 31 31 Print Done