At December 31 of the current year, a company reported the following: total sales for the current year: $880,000. Accounts receivable balance at December 31, end of current year: $210,000 Allowance for Doubtful Accounts balance at Dec. 31: 1,500 credit
1. Prepare the necessary adjusting entries to record bad debts expense assuming this company's bad debts are estimated to equal:
A) 1.5% of credit sales.
B) 5%of accounts receivable.
2.prepare the necessary entry to write off J. Mohr's $300 A/R balance.
3.prepare the necessary entries to record the recovery of J. Mohr's A/R balance when he pays the company at later date.