During 20X1, the Designer Department Store had credit sales of $500,000. The store manager oxpects that 2% of the credit selos will nover be collected, although no accounts are written off until 10 assorted steps have been taken to attain collection The 10 steps require a minimum of 14 months. Assume that during 20x2, specific customers are identified who are never expected to pay $7,000 that they owe from the sales of 20x1 All 10 collection stops have been completed Requirements 1. Show the impact on the balance sheet equation of the preceding transactions in 20X1 and 20X2 under (a) the specific writo-off method, and (b) the allowance method. Which method do you prefer? Why? 2. Prepare journal entries for both methods. Omit explanations. Requirement 1. Show the impact on the balance sheet equation of the preceding transactions in 20X1 and 20x2 undor (a) the specific write off method, and (b) the allowance method. Which method do you prefer? Why? Begin by showing the impact on the balance sheet equation under (a) the specific write-off method. (Use a minus sign or parentheses to show a decrease in the accounting equation component and leave any unused cells blank.) (a) Specific Write-Off Assets = Liabilities + Stockholders' Equity 9) Allowance for 12) Accounts Uncollectible Bad Debt Receivable + Accounts Sales + Expense 20X1 Sales 11 + 20X1 Allowance 20X2 Write-off