2016 2015 Net Credit Sales 539,220 $603,000 Recevables at end of year 38,600 43,100 Requirements 1. Compute New's days' sales in receivables for 2016. (Round to the nearest day) 2. Suppose New's normal credit terms for a sale on account are "2/10, net 30. How well does New's good or bad for New? collection period compare to the company's credit terms? ls this Problems Group A 8-27A unting for uncollectible accounts using the allowance percent-of-sales) and direct write-off methods and reporting receivables on the balance sheet Bad Debts Expense $5,4 On August 31, 2016, Lily Floral Supply had a $145,000 debit balance in Accounts Receivable and a $5,800 credit balance in Allowance for Bad Debts. During September, Lily made Sales on account, $540,000. Ignore Cost of Goods Sold. . Collections on account, $581,000. Write-offs of uncollectible receivables, $5,000. Requirements 1. Journalize all September entries using the allowance method. Bad debs expense was estimated at 1% ofcredit sales. Show all September activity in Accounts Receivable, Allowance for Bad Debss, and Bad Debs Expense (post to these 1-accounts Using the same facts, assume that Lily used the direct write-off method to account for uncollectible receivables. Journalize all September entries using the direc write-off method. Post to Accounts Receivable and Bad Debts Expense, and show their balances at September 30, 2016. 2. statement under each of the two methods? Which amount better matches expense with revenue? Give your reason. 3. What amount of Bad Debts Expense would Lily report on its September income What amount of net accounts receivable would Lily report on its September 30, 2016, balance sheet under each of the two methods? Which amount is more realistic? Give your reason. 4