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 Receivable

showed a $$10,000$ debit balance and the Allowance for Doubtful Accounts showed a

$$550$ credit balance. Collections of accounts receivable during $2021$ amounted to

$$63,000.$

Data during $2021$ follow:

a$.$ On December $10,$ a customer balance of $$1,250$ 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.

Required:

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.

Give the required journal entries for the two events in December. $($If no entry is required for a

Required" in the first account field.$)$