Journal entries for the allowance method. The following data relate to sales made on account by Schneider Corporation for the years ended October 31, 2006, 2007, and 2008: Accounts Written Off as Uncollectible in Year Year Account 2006 2007 2008 2009 2010 Total 2006 . . . . . . . . . . . . $ 750,000 $1,300 $ 8,700 $ 3,900 — — $13,900 2007 . . . . . . . . . . . . 1,200,000 — 2,500 16,600 $ 3,800 — 22,900 2008 . . . . . . . . . . . . 2,400,000 — — 3,100 37,800 $4,800 45,700 $4,350,000 $1,300 $11,200 $23,600 $41,600 $4,800 $82,500 Schneider Corporation estimates that 2% 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 2% of sales on account appear to be a reasonable rate for estimating this firm’s uncollectibles?