During the year ended December 31, 2021, Kelly's Camera Shop had sales revenue of $210,000, of which $105,000 was on credit. At the start of 2021, Accounts Receivable showed a $12,000 debit balance and the Allowance for Doubtful Accounts showed a $680 credit balance. Collections of accounts receivable during 2021 amounted to $76,000. Data during 2021 follow: a. On December 10, a customer balance of $1,900 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-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. 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. Req 1 Req 2A Req 2B 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.) View transaction list Journal entry worksheet Req 1 Req 2A Req 2B 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.) View transaction list Journal entry worksheet 1 2 Record the write-off of a certain customer account from a prior year which is not collectible totaling $1,900. Note: Enter debits before credits. Date December 10, 2021 General Journal Debit Credit Record entry Clear entry View general journal > 1. 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. 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. Req 1 Req 2A Req 2B Req 3 Show how the amounts related to Bad Debt Expense would be reported on the income statement. Kelly's Camera Shop Income Statement (partial) Year ending December 31, 2021 Operating Expenses: Accounts Payable Accounts Receivable Accounts Receivable, Net of Allowance Accumulated Amortization Req 2B > 1. 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. 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. Req 1 Req 2A Req 2B Req 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, 2021 Current Assets _ Accounts Payable Accounts Receivable Accounts Receivable, Net of Allowance Accumulated Amortization 2A Req 3 > 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-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. 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. Req 1 Req 2A Req 2B Req 3 On the basis of the data available, does the 2 percent rate appear to be reasonable? Does the 2 percent rate appear to be reasonable? C < Red Req 3 Yes No