Question: King Enterprises had 27 customers utilizing its financial planning services in 2019. Each customer paid King $25,000 for receiving King's assistance. King estimates that 2%

King Enterprises had 27 customers utilizing its financial planning services in 2019. Each customer paid King $25,000 for receiving King's assistance. King estimates that 2% of its $675,000 credit sales in 2019 will be uncollectible. During 2020, King wrote off $2,700 related to services performed in 2019.
Required:
1. Prepare the journal entry to record the defaulted balance.
2. Prepare the adjusting entry to record the bad debt expense for 2019?

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