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During the year ended December 3 1 , 2 0 2 1 , Kelly's Camera Shop had sales revenue of $ 2 1 5 ,

During the year ended December 31,2021, Kelly's Camera Shop had sales revenue of $215,000, of which $107.500 was on credit. At the start of 2021, Accounts Receivable showed a $11,000 debit balance and the Allowance for Doubtful Accounts showed a $690 credit balance. Collections of accounts receivable during 2021 amounted to $77,000.
Data during 2021 follow:
a. On December 10, a customer balance of $1,950 from a prior year was determined to be uncollectible, so it was written off.
b. On December 31, a decision was made to continue the accounting policy of basing estimated bad debt losses on 2 percent of credit sales for the year.
Requlred:
Give the required journal entries for the two events in December.
2-a. Show how the amounts related to Bad Debt Expense would be reported on the income statement.
2-b. Show how the amounts related to Accounts Receivable would be reported on the balance sheet.
On the basis of the data available, does the 2 percent rate appear to be reasonable?
Complete this question by entering your answers in the tabs below.
Req 1
Req 24
Reg2B
Req 3
Give the required journal entries for the two events in December. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Journal entry worksheet
1
2
Record the write-off of a certain customer account from a prior year which is not collectible totaling $1,950.
Note: Enter debits before credits.
\table[[Date,General Journal,Debit,Credit],[December 10,2021,2,,],[,E,the,],[,=,,],[,,,],[,,,],[5,,,]]
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