Riverside Wholesale estimates bad debts as a percentage of net credit sales.
| Date | Event |
|---|
| December 31, 2025 | Net credit sales for the year were $800,000. Bad debts are estimated at 1% of net credit sales. |
| February 20, 2026 | The $1,200 account of a customer, Halloran Bros., was determined to be uncollectible and written off. |
Required: Prepare the December 31, 2025 adjusting entry to record bad debt expense, and the February 20, 2026 entry to write off the Halloran Bros. account.