accounts receivabie were writien of as uncoloctible, and a $100 accoum previousy writen off is collected. Roquired: the bad debes are reconbed as they actualy occut. 2. Next Level Which meinod-recording bad debts in the period of sale or when they actuady occur-is prelered? Why? ASSETS 111 Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 141 Inventory 152 Prepaid Insurance 181 Equipment 198 Accumulated Depreciation LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue REVENUE 411 Sales Revenue EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense 261 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings 1a. Assume that bad debts are estimated as 3% of credit sales at the time of sale. Prepare fhe joumal entries to record the credit sales for Docember and the related estimafe of uncolloctiblo accounts on December st. Next, record the collections on account, the amount that was written arl, and the collection of the account that had been previousty wnition off, General vaumat instactions. Question not attempted. 16. Assume that the bad debts are recorded as they actualy occur. Prepare the joumal entry on December 3t to record the credit salas for Decamber Next, recond the collections on account, the amount that was written oft, and the collectlon of the account that had boen previousty winten off. General doumat instructions Question not ettempted