An Inexperienced Accountant Made the Following Entries Instructions
Prepare the Correcting Entries

Essay

An inexperienced accountant made the following entries. In each case the explanation to the entry is correct. $\begin{array}{lrr} \text { 27\quad\quad Cash} &780\\\quad\quad\quad \text {Bad Debt Expense } &&780\\ \quad\quad\text { (Collection of account previously written off as } &\\ \quad\quad\text { uncollectible under allowance method) } &\\\end{array}$


$\begin{array}{lll} \text { 31\quad\quad Bad Debt Expense} &400\\\quad\quad\quad \text { Allowance for Doubtful Accounts} &&400\\\quad\quad\text { (To recognize estimated bad debts based on \( 1 \% \) } &\\ \quad\quad\text { of net sales of \( \$ 400,000 \) } &\\\end{array}$
Instructions
Prepare the correcting entries.