The 2012 annual report of Johnson Services reveals the following information. The dollar amounts are end-of-year balances.

Johnson estimates bad debts each year at 2 percent of credit sales.a. Compute the actual amount of write-offs during 2012.b. Infer the journal entries that explain the activity in accounts receivable and the related allowance account during 2012.

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2012 2011 Credit sales Accounts receivable Allowance for doubtful accounts Bad debt recoveries S75,300 $61,500 9,400 1,300 55 9,200 1,000 70