During the year ended December $31,2024,$ Kelly$$s Camera Shop had sales revenue of $$220,000,$ of which $$110,000$ was on credit. At the start of $2024,$ Accounts Receivable showed a $$11,000$ debit balance and the Allowance for Doubtful Accounts showed a $$700$ credit balance. Collections of accounts receivable during $2024$ amounted to $$78,000.$

Data during $2024$ follow:

On December $10,$ a customer balance of $$2,000$ from a prior year was determined to be uncollectible, so it was written off.

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.

Required:

$1.$ Give the required journal entries for the two events in December.

$2-$a$.$ Show how the amounts related to Bad Debt Expense would be reported on the income statement.

$2-$b$.$ Show how the amounts related to Accounts Receivable would be reported on the balance sheet.

$3.$ On the basis of the data available, does the $2$ percent rate appear to be reasonable?