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

Kesler Company estimates that 2 percent of sales on account will become uncol- lectible.

a. Prepare journal entries to recognize bad debt expense and to write off uncol- lectible accounts for Year 6, Year 7, and Year 8 using the allowance method.

b. Does 2 percent of sales on account appear to be a reasonable rate for estimating uncollectibles?(Appendix)

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Accounts Written Off as Uncollectible in Year Year Sales on Account 6 7 8 9 10 Total 6....... $ 420,000 $1,200 $5,500 $1,700 - $ 8,400 7 480,000 1,500 6,100 $2,100 - 9,700 8. 550,000 - 1 1,900 7,500 $1,300 10,700 $1,450,000 $1,200 $7,000 $9,700 $9,600 $1,300 $28,800