Baucom Corporation has the following information on its books:
Sales- $500,000
A/R- $300,000
Allowance for bad debt (credit balance)- $2,000
Make the journal entries for the following situations:
a) Baucom Corp. determines that 3% of its sales are considered to be doubtful in terms of collection.
b) Baucom Corp. determines that 4% of it's A/R will be uncollectible.