Arlington Cycle Company began operations on January $1,2020.$ The company reported the following selected items in its $2021$ financial report:

$2021$

$2020$

Gross sales

$$1,400,000$

$$1,500,000$

Accounts receivable

$600,000$

$650,000$

Actual bad debt write$-$offs

$22,000$

$10,000$

Arlington estimates bad debts at $2$ percent of gross sales.

Analyze the activity in the allowance for bad debts T$-$account, and comment on whether the bad debt estimate has been sufficient to cover the write$-$offs.

Required:

After completing Exercise $6-3$ provide the following answer:

Overall, have the bad debt estimates been sufficient to cover the write$-$offs? Enter yes or no $($lower case only$).$