During the current year, Robby's Camera Shop had sales revenue of $157,000, of which $67,000 was on credit. At the start of the current year, Accounts Receivable showed a $24,000 debit balance and the Allowance for Doubtful Accounts showed a $1,400 credit balance. Collections of accounts receivable during the current year amounted to $54,000. Data during the current year follow: a. On December 31, an Account Receivable (J. Doe) of $1,600 from a prior year was determined to be uncollectible; therefore, it was written off immediately as a bad debt. b. On December 31, on the basis of experience, a decision was made to continue the accounting policy of basing estimated bad debt losses on 2.5 percent of credit sales for the year. Required: 1. Prepare the required journal entries for the two items on December 31, the end of the accounting period. 2. Show how the amounts related to Accounts receivable and Bad debt expense would be reported on the income statement and balance sheet for the current year. Disregard income tax considerations. View transaction list Journal entry worksheet < 1 2 On December 31, an Account Receivable (J. Doe) of $1,600 from a prior year was determined to be uncollectible; therefore, it was written off immediately as a bad debt. Note: Enter debits before credits. General Journal Debit Credit > Date December 31 Record entry Clear entry View general journal View transaction list Journal entry worksheet > 1 2 On December 31, on the basis of experience, a decision was made to continue the accounting policy of basing estimated bad debt losses on 2.5 percent of credit sales for the year. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Show how the amounts related to Accounts receivable and Bad debt expense would be reported on the income statement for the current year. Disregard income tax considerations. ROBBY'S CAMERA SHOP Partial Income Statement For the Year Ended December 31 Operating expenses: < Req 1 Req 2B > Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Show how the amounts related to Accounts receivable and Bad debt expense would be reported on the balance sheet for the current year. Disregard income tax considerations. (Amounts to be deducted should be indicated by a minus sign.) ROBBY'S CAMERA SHOP Partial Balance Sheet As of December 31 Current assets: Accounts receivable, net of allowance for doubtful accounts < Req 2A Req 28 >