Required: A & B

18. At December 31 of the current year, a company reported the following: Total sales for the current year: $980,000 includes $260,000 in cash sales. Accounts receivable balance at Dec. 31, end of current year: $210,000. Allowance for Doubtful Accounts balance at January 1, beginning of current year: $9,300. Bad debts written off during the current year: $6,80o. Prepare the necessary adjusting entries to record bad debts expense assuming this company's bad debts are estimated to equal (continued on the next page): (a) 1.5% of credit sales (15 points). General Journal Date Account Titles and Explanation PR Debit Credit