Question $2$

Weili's Wildflowers uses the percentage of credit sales method to estimate bad

debt expense. Weili records credit sales of $$500,000$ for the current year, and

estimates $5\%$ of sales will be uncollectible.

Record the journal entries for the following transactions:

A customer informs Weili that they will be unable to pay their $$500$ debt.

Dr$.$

Cr$.$

Weili records bad debt expense for the year.

Dr$.$

Cr$.$