Question: Problem 2 (15 points) During Year 1 , Company recorded credit sales of $75,000. Based on prior experience, it estimates a 5.5 percent bad debt

Problem 2 (15 points) During Year 1 , Company recorded credit sales of $75,000. Based on prior experience, it estimates a 5.5 percent bad debt rate on credit sales. (a) On December 31, Year 1, an account receivable for $550 from a prior year was determined to be uncollectible and was written off. Prepare a joumal entry. (b) Determine the appropriate bad debt expense adjustment and prepare the adjusting entry to record bad debt expense for the Year 1

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