Drake Consulting performs systems consulting and sells accounting software. Drake reviewed the receivables list from the January transactions. Drake uses the allowance method for receivables, estimating uncollectibles to be $3\%$ of January sales revenue of $$10,800.$ Drake identified on February $15$ that a customer was not going to pay his receivable of $$180.$

Requirements

Journalize the January $31$ entry to record and establish the allowance using the percent$-$of$-$sales method for January sales revenue.

Journalize the entry to record the write$-$off of the customer's bad debt.

Requirement $1.$ Journalize the January $31$ entry to record and establish the allowance using the percent$-$of$-$sales method for Januarycredit sales. $($Round to the nearest whole dollar. Record debits first, then credits. Select the explanation on the last line of the journal entry table.$)$

$\backslash$table$[[$Date$,$Accounts and Explanation,Debit,Credit$],[2017],[$Jan$.31,,,],[,,,],[,,,],[,7,,]]$