During 2009, Chun Productions, Inc., recorded credit sales of $700,000. Based on prior experience, it estimates a 1 percent bad debt rate on credit sales.

Required:
Prepare journal entries for each transaction:
a. The appropriate bad debt expense adjustment was recorded for the year 2009.
b. On December 31, 2009, an account receivable for $2,000 from March of the current year was determined to be uncollectible and was written off.