E8-3 Recording, Reporting, and Evaluating a Bad Debt Estimate Using the Percentage of Credit Sales Method [LO 8-2] During the year ended December 31, 2015, Kelly's Camera Shop had sales revenue of $215,000, of which $107,500 was on credit. At the start of 2015, Accounts Receivable showed a $11,000 debit balance and the Allowance for Doubtful Accounts showed a $690 credit balance. Collections of accounts receivable during 2015 amounted to $77,000. Data during 2015 follow: a. On December 10, a customer balance of $1,950 from a prior year was determined to be uncollectible, so it was written off. 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. Required: 1. 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.) view transaction list view general journal Date General Journal Credit Dec. 10, 2015 Allowance for Doubtful Accounts 1,950 Accounts Receivable 1,950 Dec. 31, 2015 Bad Debt Expense 2,150 Allowance for Doubtful Accounts 2,150