During the year ended December 31, 2018 Kelly's Camera Shop had sales revenue of $125.000. of which $62,500 was on credit. At

the start of 2018, Accounts Receivable showed a $11.000 debit balance and the Allowance for Doubtful Accounts showed a $510

credit balance. Collections of accounts receivable during 2018 amounted to $59,000.

Data during 2018 follow:

a. On December 10, a customer balance of $1,050 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:

1. Give the required journal entries for the two events in December.

2. Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the balance sheet and income

statement for 2018.

3. On the basis of the data available, does the 2 percent rate appear to be reasonable?

During the year ended December 31, 2018, Kelly's Camera Shop had sales revenue of $125,000, of which $62,500 was on credit. At the start of 2018, Accounts Receivable showed a 511000 debit balance and the Allowance for Doubtful Accounts showed a $510 credit balance Collections of accounts receivable during 2018 amounted to $59.000 Data during 2018 follow a. On December 10, a customer balance of 1,050 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: 1. Give the required journal entries for the two events in December 2. Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the balance sheet and income statement for 2018 3. 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. Reg 1 Reg 2 Reg 28 R3 Show how the amounts related to Bad Debt Expense would be reported on the income statement? Kelly's Camera Shop Income Statement partia Year ending December 31, 2018 Operating Expenses During the year ended December 31, 2018, Kelly's Camera Shop had sales revenue of $125,000, of which $62,500 was on credit. At the start of 2018. Accounts Receivable showed a $11000 debit balance and the Allowance for Doubtful Accounts showed a $510 credit balance Collections of accounts receivable during 2018 amounted to 559.000 Data during 2018 follow a On December 10, a customer balance of $1,050 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: 1. Give the required journal entries for the two events in December 2. Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the balance sheet and income 3. On the basis of the data available, does the 2 percent rate appear to be reasonable? Statement for 2018 Complete this question by entering your answers in the tabs below. Rot Red 2A Reg 20 Reg 3 show how the amounts related to Accounts Receivable would be reported on the balance sheet? Kelly's Camera Shop Balance Sheet (partial) At December 31, 2018 Current Assets ( Req2A Req3 > During the year ended December 31, 2018, Kelly's Camera Shop had sales revenue of $125,000, of which $62,500 was on credit. At the start of 2018. Accounts Receivable showed a $11,000 debit balance and the Allowance for Doubtful Accounts showed a $510 credit balance Collections of accounts receivable during 2018 amounted to $59,000 Data during 2018 follow a on December 10, a customer balance of $1,050 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: 1. Give the required journal entries for the two events in December 2. Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the balance sheet and income statement for 2018 3. 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. Reg 1 Reg 2 Reg 26 Rega On the basis of the data available, does the 2 percent rate appear to be reasonable? Does the percent rate appear to be reasonable?