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?

Elunt Company reported accounts receivable of $210,000 on Dec. 31, Year 1, On January 11, Year 2, Bunt collected $20,400 of accounts receivable On January 15, Year 2, Se00 of accourts recelvable were wripen of as uncolectible, and a $100 account previousy written of is collected. Required: 1. Propare the joumal entries necessary to mecond the proceding intormation il (a) bad debts ave estimated as 35 af accounts recevable and (b) the bad debts are reoerded as they actualy acar