16. come of their bushoss practices. Their first step is to mate decisions about handing accounts recewable 5o tar, year to date credi sales have been 521,000 A review of outstanding recevables resuted in the following aging schediste Water Way Company has expenienced rapid growth in its frst few months of operations and has had a significant increase in customers renting canoes and purchaning T shirta. Marn of these cuslomers are asking for credit terms. Anya and Zous Wilson, stockholders and company managers, have decided it is time to review their business transactions and updale some of their business practices. Their first step is to make dectsions about handling accounts receivable. So far, year to date credit sales have been $21,000. A review of outstanding teceivables resuted in the following aging schesiule. (Click the icon to view the aging schedule) Read the iqquirements Requirement 1. The company wants to use the allowance method to estmate bad dehts. Aseume a zero beginning balance for Alowanco for Bad Debls a. Determine the estimated bad debts expense under the percent-of-sales methods at June 30, 2025 . Assume that 6% of credit sales will not be collected. (Round to the noarest dollar )