Journal entries for the allowance method. Data related to sales on account of Emmons Corporation appear below:

Emmons Corporation estimates that 3 percent of sales on account will ultimately become uncollectible. Uncollectible accounts generally occur within three years of the year of sale.

a. Prepare journal entries to recognize bad debt expense and to write off uncollectible accounts for Year 1, Year 2, and Year 3 using the allowance method.

b. Does 3 percent of sales on account appear to be a reasonable rate for estimating uncollectibles?

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Year Sales on Account 1 2 3 Accounts Written Off as Uncollectible in Year 4 5 Total 1... $1,500,000 $2,300 $18,600 $ 9,000 - $ 29,900 2 ... 1,800,000 3,500 24,900 $ 7,800 36,200 3... 2,400,000 4,100 $5,700,000 $2,300 $22,100 $38,000 31,900 $39,700 $11,700 47,700 $11,700 $113,800