1) Blackhorse Productions, Inc., used the aging of accounts receivable method to determine that its "bad" debt estimate is $22,750. The Allowance for Doubtful Accounts has a credit balance of $6,000. Required: Prepare journal entries for each of the following: - Record the journal entry needed to record the bad debt expense. - Record the journal entry to write off an actual bad receivable in the amount of $3,000. 2) During the year ended December 31, 2021, Kelly's Camera Shop had sales revenue of $170,000, of which $75,000 was on credit. At the start of 2021. Accounts Receivable showed a $15,000 debit balance and the Allowance for Doubtful Accounts showed a $600 credit balance. Collections of accounts receivable during 2021 amounted to $42,000. Data during 2021 follow: On December 10, a customer balance of $1,900 from a prior year was determined to be uncollectible and was written off. On December 31 , a decision was made to continue the accounting policy of basing estimated bad debt lostes on 2 percent of credit sales for the year. Required: - Prepare the required journal entries for the two events in December. - Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the balance sheet and income statement for 2021. What is the Net Realizable Value of the accounts receivable? - On the basis of the data available, does the 2 percent rate appear to be reasonable? Explain