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During the year ended December 31,2020 , Kelly's Camera Equipment had sales revenue of $170,000, of which $85,000 was on credit At the start of 2020 , Accounts Receivable showed a $10,000 debit balance, and the Allowance for Doubtful Accounts showed an $800 credit balance. Collections of accounts recelvable during 2020 amounted to $68,000. Use the following data for 2020 to answer the questions: a. On December 10, 2020, a customer balance of $1,500 from a prior year was determined to be uncollectible, so it was written off. b. On December 31,2020 , a declsion was made to continue the accounting policy of basing estimated bad debt losses on 2 percent of credit sales for the year. Required: 1. Prepare the required journal entries for the two events in December 2020 . (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 2 On December 10,2020 , a customer balance of $1,500 from a prior year was determined to be uncoliectible, so it was written off. Note: Enter debits before credits. 2. Show how the amounts related to Accounts Recelvable and Bad Debt Expense would be reported on the balance sheet and income statement for 2020. (Amounts to be deducted should be indicated by a minus sign.) 3-a. On the basis of the data avaliable, does the 2 percent rate appear to be reasonable? Yes No 3-b. This part of the question is not part of your Connect assignment

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