On December 31, Burrell, Inc.'s books showed accounts receivable of $385,600; sales revenue of $1,480,000 (70% were on credit); and Allowance for Doubtful Accounts of $1,600 (credit balance).
-Calculate and prepare journal entries to record the estimate for bad debts, assuming:
(1) Ten percent of the accounts receivable balance is assumed to be uncollectible.
(2) Bad debts expense is estimated to be 2% of credit sales.

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The Answer of On December 31, Burrell, Inc.'s books showed accounts receivable of $385,600; sales revenue of $1,480,000 (70% were on credit); and Allowance for Doubtful Accounts of $1,600 (credit balance).
-Calculate and prepare journal entries to record the estimate for bad debts, assuming:
(1) Ten percent of the accounts receivable balance is assumed to be uncollectible.
(2) Bad debts expense is estimated to be 2% of credit sales.