E8-3 Recording, Reporting, and Evaluating a Bad Debt Estimate Using the Percentage of Credit Sales Method (LO 8-2] During the year ended December 31, 2012, Kelly?s Camera Shop had sales revenue of $165000, of which $82,500 was on credit. At the start of 2012, Accounts Receivable showed a $12,000 debit balance, and the Allowance for Doubtful Accounts showed a S590 credit balance. Collections of accounts receivable during 2012 amounted to $67,000. Data during 2012 follow: a. On December 10, 2012, a customer balance of $1,450 from a prior year was determined to be uncollectible, so it was written off. b. On December 31, 2012, 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 2012. (If no entry is required for a transaction event, select No Journal Entry Required in the first account field.) No Transaction Recorded b No Transaction Recorded 2. Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the balance sheet and income statement for 2012