Quality Watches Completed The Following Selected Transactions During 2013 And 2014: 2013 Dec. 31 Estimated That Bad Debts Expense For The Year Was 2% Of Credit Sales Of $ 450,000 And Recorded That Amount As Expense. 31 Made The Closing Entry For Bad Debts Expense. 2014 Jan. 17 Sold Merchandise Inventory To Malcolm Monet, $ 700, On Account. Ignore Cost Of Goods Sold. Jun. 29 Wrote Off Malcolm Monet's Account As Uncollectible After Repeated Efforts To Collect From Him. Aug. 6 Received $ 700 From Malcolm Monet, Along With A Letter Apologizing For Being So Late. Reinstated Monet's Account In Full And Recorded The Cash Receipt. Dec. 31 Made A Compound Entry To Write Off The Following Accounts As Uncollectible: Brian Kemper, $ 1,600; May Milford, $ 1,000; And Ronald Richter, $ 400. 31 Estimated That Bad Debts Expense For The Year Was 2% On Credit Sales Of $ 460,000 And Recorded The Expense. 31 Made The Closing Entry For Bad Debts Expense. Requirements 1. Open T Accounts For Allowance For Bad Debts And Bad Debts Expense. Keep Running Balances, Assuming All Accounts Begin With A Zero Balance. 2. Record The Transactions In The General Journal, And Post To The Two T Accounts. 3. Assume The December 31, 2014, Balance Of Accounts Receivable Is $ 135,000. Show How Net Accounts Receivable Would Be Reported On The Balance Sheet At That Date