$(5$ points$)$ Swathowore Clothing Corporation grants its customers $30$ days' credit. The company uses the

allowance method for its uncollectible accounts receivable

At the end of $2023,$ accounts receivable were $$611,000$ and the allowance account had a credit balance of

$$63,000.$ Accounts receivable activity for $2024$ was as follows:

Beginning balance

$$611,000$

Credit sales

$2,830,000$

Collections

$(2,714,000)$

Write$-$offs

$(71,000)$

Ending balance

$$643,000$

Record the journal entry for recording year$-$end bad debt expense under the following $2$ scenarios:

The company records bad debt expense at $4\%$ of credit sales $($income statement approach$)$

The company records bad debt expense at $6\mathrm{.}25\%$ of ending accounts receivable $($balance sheet

approach$)$

Income statement approach

Balance sheet approach