X More Info s in the gener ad De Exc erald 2018 ear w 7 Dec. 31 Estimated that bad debts expense for the year was 3% of credit sales of $460,000 and recorded that amount as expense. The company uses the allowance method. Made the closing entry for bad debts expense. Dec. 31 2019 Jan. 17 Jun. 29 Aug. 6 Sold merchandise inventory to Michael Smith, $800, on account. Ignore Cost of Goods Sold. Wrote off Michael Smith's account as uncollectible after repeated efforts to collect from him. Received $800 from Michael Smith, along with a letter apologizing for being so late. Reinstated Smith's account in full and recorded the cash receipt. Made a compound entry to write off the following accounts as uncollectible: Brian Kemper, $2,000; Martha Manny, $1,000; and Rick Johnson, $100. Estimated that bad debts expense for the year was 3% on credit sales of $500,000 and recorded the expense. Made the closing entry for bad debts expense. se. Dec. 31 Dec. 31 Dec. 31 Print Done Allowance for Bad Debts Bad Debts Expense 13800 Beg. Bal Adj. Bai. Jun. 29 800 Aug. 6 Dec. 31 (Clos) 3100 25700 Dec 31, 2019 Bal