The 1997 annual report of Johnson Services reveal the following information. The dollar amounts are end-of-year balances. 1997 1996 Credit sales Accounts receivable Allowance for doubtful accounts Bad debt recoveries $75,300 $61,500 9,400 9,200 1,300 1,000 55 70 Johnson estimates bad debts each year at 2 percent of credit sales. REQUIRED:

a. Compute the actual amount of write-offs during 1997.

b. Infer the journal entries that explain the activity in Accounts Receivable and the related allowance account during 1997.