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 $175,000, of which $87,500 was on credit. At the start of 2015, Accounts Receivable showed a $11,000 debit balance and the Allowance for Doubtful Accounts showed a $610 credit balance. Collections of accounts receivable during 2015 amounted to $69,000 Data during 2015 follow a. On December 10, a customer balance of $1,550 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. (f no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the estimated bad debt losses at 2 percent of credit sales for the year Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31, 2015 Allowance for Doubtful Accounts 1,550 Accounts Receivable 1,550 Record entry Clear entry View general journal