Phoebe's Massage Company uses the allowance method to account for bad debt expense. Phoebe makes credit sales of $70,000 during the year. At year end, Phoebe estimates that $7,000 of those sales will not be collected. The next year, Phoebe determines that a $1,500 receivable is uncollectible and should be written off.
Required
Prepare the journal entries to record the credit sales, bad debt expense, and the write-off of uncollectible accounts.