t6-20 Recordlng. Reporting. ard EveluatingBed Debt Estimate Using the Percentage of Credit Seles Method 106-2 During the current Year, Bob's Ceramics Shop had sales reverue of $162,000, of which $83,000 was on credit Al the start of the current yeat, Accourts Receivable showed a $24,000 debit bwlance, and the Allowance for Doubtful Accounts showed a $1,700 credit balance Collecions of accounts receivabe during the current year amounied lo Dals during the current year follows a. On Dacembor 31, an Account Recolvablo Toby's Gift Shop) of $1,600 from a prior yoar was detorminedto be unool lactizla therafora, twas witton off immadiataly as a bad debt. b On December 31, on tie basis of esper ence a decison was made t, cortinue the acc uring policy of bes ng estiraled bad debt losses on 2 0 percert d creda sales fr . year. Required 1. Prepare the r-e red ournal entries fr te two lers on Ducar er 31, end cf th* Kcounting period no entry is required for a transaction event select No ournal entry required in the first account field mbor 31 Alowance for doubtu Accounts receivable (Toby's Gift Shop) Dacombor 31 Bad debtexpen 2 Show how the amounts relaled to Accounts Receivable and Bed Debl Experse would be reporled on the income slalement and balance sheet for the cument year Disregard income tax considerations. (Amounts to be deducted should be indicated by minus sign) Oper Partial Balance Sheet