Richy Watches completed the following selected transactions during 2024 and 2025: Click the icon to view the transactions.) Read the requirements Requirement 1. The T-accounts for Allowance for Bad Debts and Bad Debts Expense have been opened for you. assuming the accounts begin with a zero balance. Record the transactions in the general journal (omit explanations) and post to the two T-accounts. (Record debits first, then credits. Exclude explanations from journal entries Abbreviations used: Adi. - Adjusting entry, Clos. Closing entry, WO Write-off) Begin by recording the 2024 transactions in the general joumal. Dec 31 Estimated that bad debts expense for the year was 2% of credit sales of $480,000 and recorded that amount as expense. The company uses the allowance method. Date Accounts and Explanation Credit Debit 2024 Dec. 31 (Adj.) 2024 Dec. 31 Estimated that bad debts expense for the year was 2% of credit sales of $480,000 and recorded that amount as expense. The company uses the allowance method Dec. 31 Made the closing entry for bad debts expense. 2025 Jan. 17 Sold merchandise inventory to Malcom Monet, $700, an account Ignore Cost of Goods Sold. Jun.29 Wrote of Malcom Monet's account as uncollectible after repeated efforts to collect from him. Aug. 6 Received $700 from Malcom 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: Bernard Klaus, $1,600; Mary Martin, $1,000; and Ronald Richter, $100. Dec. 31 Estimated that bad debts expense for the year was 2% on credit sales of $540,000 and recorded the expense. Dec. 31 Made the closing entry for bad debts expense. 1. The T-accounts for Allowance for Bad Debts and Bad Debts Expense have been opened for you, assuming the accounts begin with a zero balance. Record the transactions in the general journal (omit explanations), and post to the two T-accounts. 2. Assume the December 31, 2025, balance of Accounts Receivable is $137,000. Show how net accounts receivable would be reported on the balance sheet at that date