56-8 LO 6.5 AL Estimation versus Direct Weite-Off of Bad Debts Blunt Company makes credit sales of $21,000 during the month of February 2019. During 2019, collections are received on February sales of $20,400, accounts represent- ing $600 of these sales are written off as uncollectible, and a $100 account previously written off is collected. Required: 1. Prepare the journal entries necessary to record the preceding information if (a) bad debts are estimated as 3% of credit sales at the time of sale and (b) the bad debts are recorded as they actually occur. 2. Next Level Which method-recording bad debts at the time of sale or when they actually occuris preferred? Why? SHOW ME HOW