During its first year of operations, Chocolate Passion earned net credit sales of $317,000. Industry experience suggests that bad debts will amount to 3% of net credit sales. At December 31,2024 , accounts receivable total $41,000. The company uses the allowance method to account for uncollectibles. Read the requirements. Requirement 1. Journalize Chocolate's Bad Debts Expense using the percent-of-sales method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Requirements