Blunt Company makes credit sales of $25,000 during the month of February 2019. During 2019, collections are received on February sales of $24,500, accounts representing $500 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 methodrecording bad debts at the time of sale or when they actually occuris preferred? Why? 1a. Assume that bad debts are estimated as 3% of credit sales at the time of sale. Prepare the journal entries to record the credit sales for February and the related estimate of uncollectible accounts on February 28. Next, record the collections on account, the amount that was written off, and the collection of the account that had been previously written off. General Journal Instructions Question not attempted. PAGE 1 GENERAL JOURNAL Score: 0/151 DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 3 1b. Assume that the bad debts are recorded as they actually occur. Prepare the journal entry on February 28 to record the credit sales for February. Next, record the collections on account, the amount that was written off, and the collection of the account that had been previously written off. General Journal Instructions How does grading work? PAGE 1 GENERAL JOURNAL Score: 111/126 DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 25,000.00 Feb. 28 Accounts Receivable Sales Revenue 2 25,000.00 3 Mar. 1 Accounts Receivable 24,500.00