Sparkle 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: Adj. = Adjusting entry, Clos. = Closing entry, W/O = Write-off.) Begin by recording the 2024 transactions in the general journal. Dec. 31: Estimated that bad debts expense for the year was 2% of credit sales of $500,000 and recorded that amount as expense. The company uses the allowance method. More info 2024 Dec. 31 Estimated that bad debts expense for the year was 2% of credit sales of $500,000 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 Marty White, $1,100, on account. Ignore Cost of Goods Sold. Jun. 29 Wrote off Marty White's account as uncollectible after repeated efforts to collect from him. Aug. 6 Received $1,100 from Marty White, along with a letter apologizing for being so late. Reinstated White'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, $1,200; Mildred Moffet, $1,000; and Ronald Richter, $450. 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. Requirements 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 $134,000. Show how net accounts receivable would be reported on the