During 2014, Giatras Electronics recorded credit sales of $680,000. Based on prior experience, it estimates a 3.5 percent bad debt rate on credit sales.

Required:
1. Prepare journal entries for each of the following transactions.
a. The appropriate bad debt expense adjustment was recorded for the year 2014.
b. On December 31, 2014, an account receivable for $2,800 from a prior year was 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 eachtransaction.

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Income from Transaction Net Saies Goss Profit Operaions Operations