The Blunt Company makes credit sales of $21,000 during the month of February 2007. During 2007 collections are received on February sales of $20,400, accounts representing $600 of these sales are written off as uncollectible, and a $100 account previously written off is collected.

Required
Prepare the journal entries necessary to record the preceding information if
(1) Bad debts are estimated as 3% of sales at the time of sale, and
(2) The bad debts are recorded as they actually occur.