During Year 1, Wolfs Camera Shop had sales revenue of $85,000, of which $37,500 was on credit. At the start of the Year 1, Accounts Receivable showed an $8,000 debit balance, and the Allowance for Doubtful Accounts showed a $450 credit balance. Collections of accounts receivable during Year 1 amounted to $30,000. Data during the Year 1 follows: a. On December 31, Year 1, an Account Receivable (Mr Bill Burton) of $250 from a prior year was determined to be uncollectible; therefore, it was written off immediately as a bad debt. b. On December 31, Year 1, on the basis of experience, a decision was made to continue the accounting policy of basing estimated bad debt losses on 1.5 percent of credit sales for the year. Required: 1. Give the required journal entries for the two items on December 31, Year 1 (end of the accounting period).

2. Show how the amounts related to Accounts Receivable will be shown on the balance sheet for Year 1. Make sure to include all transactions that impacted AR in year 1.