10.00 points Brown Cow Dairy uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due, $14,500, (2) up to 120 days past due, $7,500, and (3) more than 120 days past due, $2,500. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due to uncollectibility is (1) 2 percent, (2) 10 percent, and (3) 30 percent, respectively. At December 31 (end of the current year), the Allowance for Doubtful Accounts balance is $740 (credit) before the end-of-period adjusting entry is made. Data during the current year follow a. During December, an Account Receivable (Patty's Bake Shop) of $690 from a prior sale was determined to be uncollectible; therefore, it was written off immediately as a bad debt. b. On December 31, the appropriate adjusting entry for the year was recorded. Required: 1. Give the required journal entries for the two items listed above. Answer is complete but not entirely correct. No Date General Journal Debit Credit December Bad debt expense 690 31 Accounts receivable (Patty's Bake Shop) 690 Bad debt expense 1,050 31 Allowance for doubtful accounts 1,050 2. Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the income statement and balance sheet for the current year. Disregard income tax considerations.(Amounts to be deducted should be indicated by a minus sign.) Answer is complete but not entirely correct. BROWN COW DAIRY COMPANY Income Statement (Partial) For the Year Ended December 31 Bad debt expense $1,7403 Answer is not complete. BROWN COW DAIRY COMPANY Balance Sheet (Partial) As of December 31 Current assets Alowance for doubtful accounts Accounts receivable, net of allowance for doubtful