Exercise 1: percentage of credit sales 12/31/2018 12/31/2017 Allowance for doubtful accounts $5,500 (cr.) $6,000 (cr.). During 2018, Pam recorded revenue of $100,000 including $80,000 on account. Past experience indicates 3% bad debt! rate on credit sales (1) Prepare journal entry for sales during 2018 (2) Record the estimation of bad debt expense (3) How much did Pam write off in 2018 (4) Record the write-off (5) Show how the amounts related to A/R and bad debt expenses would be reported on the I/S and B/S for 2018. (On 12/31/17. A/R showed a $20,000 balance)