During the year ended December 31,2020 , Kelly's Camera Equipment had sales revenue of $170,000, of which $85,000 was on credit. At the start of 2020, Accounts Receivable showed a \$10,000 debit balance, and the Allowance for Doubtful Accounts showed an $800 credit balance. Collections of accounts receivable during 2020 amounted to $68,000. Use the following data for 2020 to answer the questions: a. On December 10, 2020, a customer balance of $1,500 from a prior year was determined to be uncollectible, so it was written off. b. On December 31, 2020, 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. Prepare the required journal entries for the two events in December 2020 . (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet On December 10, 2020, a customer balance of $1,500 from a prior year was determined to be uncollectible, so it was written off. Note: Enter debits before credits. 2. Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the balance sheet and income statement for 2020 . (Amounts to be deducted should be indicated by a minus sign.) 3-a. On the basis of the data available, does the 2 percent rate appear to be reasonable? Yes No 3-b. This part of the question is not part of your Connect assignment. Prior to recording the following, E. Perry Electronics, Incorporated, had a credit balance of $2,000 in its Allowance for Doubtful Accounts. Required: Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. On August 31, a customer balance for $300 from a prior year was determined to be uncollectible and was written off. Journal entry worksheet On August 31, a customer balance for $300 from a prior year was determined to be uncollectible and was written off. Note: Enter debits before credits. On December 15 , the customer balance for $300 written off on August 31 was collected in full. Journal entry worksheet Note: Enter debits before credits