Journal entries for the allowance method. Data related to sales on account of Heath Company for its first three years of operations, 2006–2008, appear next: Sales on Accounts Written Off as Uncollectible in Year Year Account 2006 2007 2008 2009 2010 Total 2006 . . . . . . . . . . . . $ 340,000 $1,800 $5,800 $ 3,000 — — $10,600 2007 . . . . . . . . . . . . 450,000 — 2,500 8,200 $ 3,400 — 14,100 2008 . . . . . . . . . . . . 580,000 — — 2,900 12,700 $3,300 17,900 $1,370,000 $1,800 $8,300 $14,100 $16,100 $3,300 $42,600 Heath Company estimates that 3% of sales on account will ultimately become uncollectible. Uncollectible accounts generally occur within three years of the year of sale. a. Prepare journal entries to recognize bad debt expense and to write off uncollectible accounts for 2006, 2007, and 2008 using the allowance method. b. Does 3% of sales on account appear to be a reasonable rate for estimating uncollectibles for Heath Company?