es E8-3 (Static) Recording, Reporting, and Evaluating a Bad Debt Estimate Using the Percentage of Credit Sales Method [LO 8-2] During the year ended December 31, 2021, Kelly's Camera Shop had sales revenue of $170,000, of which $85,000 was on credit. At the start of 2021, Accounts Receivable showed a $10,000 debit balance and the Allowance for Doubtful Accounts showed a $600 credit balance. Collections of accounts receivable during 2021 amounted to $68,000. Data during 2021 follow. a. On December 10, a customer balance of $1,500 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-a. Show how the amounts related to Bad Debt Expense would be reported on the income statement. 2-b. Show how the amounts related to Accounts Receivable would be reported on the balance sheet. 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 Req 2A Current Assets Req 2B Show how the amounts related to Accounts Receivable would be reported on the balance sheet. Req 3 Kelly's Camera Shop Balance Sheet (partial) At December 31, 2021

E8-3 (Static) Recording, Reporting, and Evaluating a Bad Debt Estimate Using the Percentage of Credit Soles Method [LO 8-2] During the year ended December 31, 2021, Kelly's Camera Shop had sales revenue of $170,000, of which $85,000 was on credit At the start of 2021. Accounts Receivable showed a $10.000 debit balance and the Allowance for Doubtful Accounts showed a $600 credit balance. Collections of accounts receivable during 2021 amounted to $68,000 Data during 2021 follow: a On December 10, a customer balance of $1,500 from a prior year was determined to be uncollectible, so it was written oft 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 entrics for the two events in Decembet. 2-a. Show how the amounts related to Bad Debt Expense would be reported on the income statement. 2 b. Show how the amounts related to Accounts Receivable would be reported on the balance sheet. 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. Show how the amounts related to Accounts Recelvable would be teported on the balance sheet. Required: 1. Give the required journal entries for the two events in December: 2-0. Show how the amounts related to Bad Debt Expense would be reported on the income statement. 2-b. Show how the amounts related to Accounts Recelvable would be reported on the balance sheet 3. On the basis of the data avallable, does the 2 percent rate appear to be reasonable? Complete this question by entering your answers in the tabs below. Give the required journat entries for the two events in December. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 1. Give the required journal entries for the two events in December. 2-0. Show how the amounts related to Bad Debt Expense would be reported on the income statement. 2-b. Show how the amounts related to Accounts Receivable would be reported on the balance sheet 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. Show how the amounts related to Bad Debt Expense would be reported on the income statement. Required: 1. Give the required journal entries for the two events in December. 2-a. Show how the amounts related to Bad Debt Expense would be reported on the income statement. 2-b. Show how the amounts related to Accounts Recelvable would be reported on the balance sheet. 3. On the basis of the data avaliable, does the 2 percent rate appear to be reasonable? Complete this question by entering your answers in the tabs below. Show how the amounts related to Accounts Receivable would be reported on the balance sheet. Required: 1. Give the required journal entries for the two events in December. 2-a. Show how the amounts related to Bad Debt Expense would be reported on the income statement. 2-b. Show how the amounts related to Accounts Recelvable would be reported on the balance sheet. 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. On the basis of the data avaliable, does the 2 percent rate appear to be reasonable