2 E8-3 Recording, Reporting, and Evaluating a Bad Debt Estimate Using the Percentage of Credit Sales Method [LO 8-2] 20 points During the year ended December 31, 2018, Kelly's Camera Shop had sales revenue of $130,000, of which $65,000 was on credit. At the start of 2018, Accounts Receivable showed a $10,000 debit balance and the Allowance for Doubtful Accounts showed a $520 creant biotonce. Collections of accounts receivable during 2018 amounted to $60,000. Data during 2018 follow, eo a on December 10, a customer balance of $1100 from a prior year was determined to be uncollectible, so it was written of b On December 31, a decision was made to continue the accounting policy of basing estimated bad debt losses on 2 percent of credit sales for the year Hart Print fo Required: 1. Give the required journal entries for the two events in December 2. Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the balance sheet and income statement for 2018 3. On the basis of the data available, does the 2 percent rate appear to be reasonable? References Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 20 Red 3 Give the required journal entries for the two events in December ( no entry is required for a transaction/event, select "Ne Journal Entry Required in the nurst account field.) View transaction list Journal entry worksheet 2 Complete this question by entering your answers in the tabs below. 20 points Req Rea 2 Reg 28 Reg 3 Give the required journal entries for the two events in December. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) Book View transaction list Hint Journal entry worksheet