Prepare the required journal entries for the two items on December 31, 2014 (end of the accounting period). Show how the amounts related to Accounts. Receivable and Bad Debt Expense would be reported on the income statement and balance sheet for 2014. income tax considerations. Prepare the required journal entries for the two items on December 31, 2014 (end of the accounting period). Show how the amounts related to Accounts. Receivable and Bad Debt Expense would be reported on the income statement and balance sheet for 2014. income tax considerations