Estimating Bad Debts - Percentage of Sales Method

XYZ Company estimates its Bad Debts by using the Percentage of Sales Method.

FACTS:

Accounts Receivable $76,200

Credit Sales 485,000

Allowance for Bad Debts 3,460

XYZ Estimates its "Uncollectible Accounts" by taking 3% of net credit sales.

REQUIRED:

1) Record the journal entry for estimating Bad Debts at 12/31/19.

2) Record the journal entry to Write Off J.Smoth's Account for $8,500.