Journal entries for the allowance method. The following data relate to sales made on account by Schneider Corporation for the years ended October 31, 2006, 2007, and 2008:

Schneider Corporation estimates that 2% of sales on account will ultimately become uncollectible. Uncollectible accounts generally occur with three years of the yea of sale.
(a) Prepare journal entries to recognize bad debt expense and to write off uncollectible accounts for 2006, 2007, and 2008 using the allowance method.
(b) Does 2% of sales on account appear to be a reasonable rate for estimating this firm's uncollectible?

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Accounts Written Off as Uncollectible in Year Sales on Account 2009 2007 2008 Total Year 2006 2010 2006 - 2007. 2008 . $ 750,000 1,200,000 $1,300 $ 8,700 $ 3,900 2,500 $13,900 22,900 16,600 $ 3,800 37,800 2,400,000 3,100 $4,800 45,700 $82,500 $4,350,000 $4,800 $1,300 $11,200 $23,600 $41,600