(Answered) Write-off of uncollectible accountsthe rock has credit

Accounting

Write-Off of Uncollectible Accounts

The Rock has credit sales of $500,000 during 2011 and estimates at the end of 2011 that 2 percent of these credit sales will eventually default. Also, during 2011 a customer defaults on a $1,800 balance related to goods purchased in 2010.

Required:

1. Prepare the journal entry to record the defaulted balance.

2. Prepare the adjusting entry to record the bad debt expense for 2011.

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