During the year ended December $31,2021,$ Kelly's Camera Shop had sales revenue of $$145,000,$ of which $$72,500$ was on credit. At

the start of $2021,$ Accounts Recelvable showed a $$10,000$ deblt balance and the Allowrance for Doubtful Accounts showred a $$550$

credlt balance. Collections of accounts recelvable during $2021$ amounted to $$03,000.$

Data during $2021$ follow:

a$.$ On December $10,$ a customer balance of $$1,250$ from a prior year wras determined to be uncoliectible, so it was written off.

b$.$ On December $31,$ a decision was made to continue the accounting policy of basing estimated bad debt inseses on $2$ percent of credit

sales for the year.

Requlred:

Give the required joumal entries for the two events in December.

$2-$a$.$ Show how the amounts related to Bad Delat Expense would be reported on the income statement.

$2-$b$.$ Show how the amounts related to Accounts Recelvable would be reported on the balance sheet.

On the bask of the data avalable, does the $2$ percent rate appear to be reasonable?

Complete this question by entering your answers in the tabs below.

Req $1$

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 fleld.$)$

Journal entry worksheet

$1$

$2$

Record the write$-$off of a certain customer account from a prior year which is

not collectible totaling $$1,250.$

Nats: Enter debis bakere cradis.