During 2003. Choi and Goldstein Furniture recorded credit sales of $650,000. Based on prior experience, it estimates a 2 percent bad debt rate on credit sales.

Required: 1. Prepare journal entries lor each transaction below.

a. The appropriate bad debt expense adjustment was recorded for the year 2(K).v

b. ( )n 1 Xvcmhei 3 1 . 2003. an account receivable for $ 1 ,d00 from a prior \ ear \\ as determined to be uncollectible and was written off. 2. Complete the following tabulation, indicating the amount and effect (+ for increase, - for decrease, and NE for no effect) of each transaction.

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a. b. Transaction Net Sales Gross Profit Income from Operations