During 2011, Gonzales Electronics Incorporated, recorded credit sales of $790,000. Based on prior experience, it estimates a 3 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 2011.
b. On December 31, 2011, an account receivable for $240 from a prior year was determined to be uncollectible and was written off.