Question 1: Burl Brothers provided the following information regarding its accounts receivable at the beginning of the current year:

Accounts Receivable	$1,320,000
Allowance for Doubtful Accounts	$(320,000)
Net Realizable Value	$1,000,000

The company reported net credit sales of $21,000,000 during the year, of which it collected $9,900,000. The company wrote off $51,000 of actual bad debts for the year. Burl Brothers estimates the allowance for doubtful accounts at 4% of the ending accounts receivable balance. Prepare the journal entry to record the year-end adjusting entry for the bad debt expense.

Question 2: Describe the importance of separating income from continuing operations from other, nonrecurring items.