Estimating and Recording Bad Debt Estimates and Write$-$Offs; Reporting of Accounts

Receivable

Mast Company's December $31$ balances from the prior year related to accounts receivable

follow.

During the current year, $$108,000$ of accounts receivable is considered uncollectible, and

no more effort to collect these accounts will be made. Total sales for the current year are

$$2,880,000,$ of which $$480,000$ are cash sales. A total of $$2,160,000$ cash was collected

during the current year from sales that were originally made on account.

Required

a$.$ Assuming that Mast applies the allowance method to estimate net accounts receivable

and uses $9\%$ of accounts receivable as its estimate of expected credit losses, prepare the

$(1)$ journal entries to record write$-$offs and to record bad debt expense for the current year,

and $(2)$ disclosure on gross and net accounts receivable on the balance sheet at December

$31$ of the current year.