P4. Coyote reported $1,000,000 of credit sales in 2021. Based on its prior experience, it was estimated that 1% of Coyotes credit sales will not be collectible. The followings are transactions related to accounts receivable. On 12/31/2021, Coyote estimated bad debt expenses for 2021 and recorded it, accordingly. On 1/4/2022, Coyote wrote off $700 of Accounts Receivable from a customer who was in financial difficulty. Instructions: Prepare any necessary journal entries for the above two transactions.