On July $31,2024,$ Fresh concluded that a customer's $$9,200$ receivable $($created in $2023)$ was uncollectible and that the account should be

written off. What effect will this action have on Fresh's $2024$ profit? Explain your answer.

CHECK FIGURES: $2.$ Bad Debt Expense $=$$$118,160$;$5.$ Bad Debt Expense $=$$$35,940$

Wondra Supplies showed the following selected adjusted balances at its December $31,2022,$ year$-$end:

During $2023,$ the following selected transactions occurred:

a$.$ Sales totalled $$1,800,000,$ of which $85\%$ were credit sales $($cost of sales $$987,000).$

b$.$ Sales returns were $$31,000,$ all regarding credit sales. The returned merchandise was scrapped.

c$.$ An account for $$29,000$ was recovered.

d$.$ Several accounts were written off, including one very large account; the total was $$65,500.$

e$.$ Collected accounts receivable of $$1,630,000($excluding the recovery in $($c$)$ above$).$ Sales discounts of $$22,000$ were taken.

Part A

Required

$1.$Journalize transactions $($a$)$ through $($e$).$ You may find it useful to post your entries to T$-$accounts for Accounts Receivable and Allowance for Doubtful Accounts. Part B $2.$ Prepare the December $31,2023$ adjusting entry to estimate entry to estimate bad debts, asssuming uncollectible accounts are estimated to be $8\%$of net credit sales. $3.$ Show how accounts receivable will appear on the December $31,2023,$ balance sheet. $4.$ What will bad debt expense be on the income statement for the year ended December $31,2023?$