during the year ended December 31, 2021, Kelly's camera shop had sales revenue of $170,000, of which $95,000 was on credit. At the start of 2021, Accounts Receivable showed a $10,000 debit balance and the Allowance for Doubtful Accounts showed a $600 credit balance. Collections of accounts receivable during 2021 amounted to $68,000.

Data during 2021 follow:

On December 10, a customer balance of $1,200 from a prior year was determined to be uncollectible and was written off

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

- prepare the required journal entries for the two events in December

- show how the amounts related to the Accounts Receivable and Bad Debt Expense would be reported on the balance sheet and income statement for 2021. What is the Net Realizable Value of the accounts receivable

- On the basis of the data available, does the 2 percent appear to be reasonable? Explain