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, 2018, Kelly's Camera Shop had sales revenue of $175,000, of which $87,500 was on credit. At the start of 2018, Accounts Receivable showed a $11,000 debit balance and the Allowance for Doubtful Accounts showed a $610 credit balance. Collections of accounts receivable during 2018 amounted to $69,000 Data during 2018 follow: a. On December 10, a customer balance of $1,550 from a prior year was determined to be uncollectible, so it was written off. 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. Required: 1. Give the required journal entries for the two events in December. 2. Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the balance sheet and income statement for 2018. 3. On the basis of the data available, does the 2 percent rate appear to be reasonable? Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 2B Reg 3 Show how the amounts related to Bad Debt Expense would be reported on the income statement? Kelly's Camera Shop Income Statement (partial) Year ending December 31, 2018 ant CARTA Required: 1. Give the required journal entries for the two events in December. 2. Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the balance sheet and income statement for 2018. 3. On the basis of the data available, does the 2 percent rate appear to be reasonable? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Reg 3 Show how the amounts related to Bad Debt Expense would be reported on the income statement? Kelly's Camera Shop Income Statement (partial) Year ending December 31, 2018 Operating Expenses Reg 28 > Required: 1. Give the required journal entries for the two events in December 2. Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the balance sheet statement for 2018. 3. On the basis of the data available, does the 2 percent rate appear to be reasonable? Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Reg 28 Req3 Show how the amounts related to Accounts Receivable would be reported on the balance sheet? Kelly's Camera Shop Balance Sheet (partial) At December 31, 2018 Current Assets Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance