During the year ended December $31,2021,$ Kelly's Camera Shop had sales revenue of $$185,000,$ of which $$92,500$ was on credit. At the start of $2021,$ Accounts Receivable showed a $$10,000$ debit balance and the Allowance for Doubtful Accounts showed a $$630$ credit balance. Collections of accounts receivable during $2021$ amounted to $$71,000.$

Data during $2021$ follow:

a$.$ On December $10,$ a customer balance of $$1,650$ 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?

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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