E6-10 (Algo) Recording Bad Debt Expense Estimates and Write-Offs Using the Percentage of Credit Sales Method LO6-2 During the current year, Sun Electronics, Incorporated, recorded credit sales of $730,000. Based on prior experience, it estimates a 2 percent bad debt rate on credit sales. Required: Prepare journal entries for each transaction: (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 $280 from a prior year was determined to be uncollectible and was b. At year-end, the appropriate bad debt expense adjustment was recorded for the current year, written off Answer is complete but not entirely correct. | No Transaction General Journal Debit Credit 1 a 14,600 % Bad debt expense Allowance for doubtful accounts 14,600 2 b. X 280 Allowance for doubtful accounts Accounts receivable 280