Blunt Company reported accounts receivable of $$210,000$ on Dec. $31,$ Year $1.$ On January $11,$ Year $2,$ Blunt collected $$20,400$ of accounts receivable. On January $15,$ Year $2,$ $$600$ of accounts receivable were written off as uncollectible, and a $$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 accounts receivable and $($b$)$ the bad debts are recorded as they actually occur.

$2.$ Next Level Which method$$recording bad debts in the period of sale or when they actually occur$$is preferred? Why?