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question during happywallet 39 s first year of operations credit sales totaled 240 0 4280258

Question

During HAPPYWALLET's first year of operations, credit sales totaled $240,000 and collections on credit sales totaled $205,000. HAPPYWALLET estimates that bad debt losses will be 2.5% of credit sales. By year-end, the amount written off was $6,000 of specific accounts that is considered uncollectible.

Required:

1. Prepare all appropriate journal entries relative to uncollectible accounts and bad debt expense.

2. Show the year-end balance sheet presentation for accounts receivable.

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