7. A company that uses the allowance method to account for its bad debts had credit sales of $850,000 in 2016, including a $2,500 sale to Linda Paul. On December 31, 2016, the company estimated its bad debts at 1.5% of its credit sales. On June 1, 2017, the company wrote off as uncollectible the $2,500 account of Linda Paul; and on December 15, 2017, Linda Paul unexpectedly paid her account in full. Prepare the necessary journal entries (a) on December 31, 2016, to reflect the estimate of bad debts expense; (b) on June 1, 2017, to write off the bad debt; and (c) on December 15, 2017, to record the unexpected collection. Skip a line between each journal entry Date Description DebitCredit