E$6-10($Static$)$ Recording Bad Debt Expense Estimates and Write$-$Offs Using the Percentage of Credit Sales Method LO$6-2$

During the current year, Sun Electronics, Incorporated, recorded credit sales of $$5,000,000.$ Based on prior experience, it estimates a $2$ percent bad debt rate on credit sales.

Required:

Prepare journal entries for each transaction:

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

a$.$ On November $13$ of the current year, an account receivable for $$98,000$ from a prior year was determined to be uncollectible and was written off.

b$.$ At year$-$end, the appropriate bad debt expense adjustment was recorded for the current year.