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, 2015, Kelly's Camera Shop had sales revenue of $185,000, of which $92,500 was on credit. At the start of 2015, Accounts Receivable showed a $10,000 debit balance and the Allowance for Doubtful Accounts showed a $630 credit balance. Collections of accounts receivable during 2015 amounted to $71,000 Data during 2015 follow: On December 10, a customer balance of $1,650 from a prior year was determined to be uncollectible, so it was written off. a. 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