Assume the following information for Shamrock Corp.
Accounts receivable (beginning balance) $159,000
Allowance for doubtful accounts (beginning balance) 11,470
Net credit sales 938,000
Collections 904,000
Write-offs of accounts receivable 6,500
Collections of accounts previously written off 2,000
Uncollectible accounts are expected to be 9% of the ending balance in accounts receivable.
Required:
(a) Prepare the entries to record sales and collection during the period.
(b) Prepare the entry to record the bad debt expense for the period.