1. Ameer Co. uses the gross method to record sales made on credit. On April 1, 2020, it made sales of $150,000 with terms 3/15 n/45. On April 9, 2020, Ameer Co. received full payment for the April 1 sale.

1. Prepare the required journal entries for Ameer Co. (gross method)
2. Prepare the journal entries showing what the Net Method would look like

2. Same info as above but change the date that payment was received to April 30, 2020

1. Prepare the required journal entries forAmeerCo. (gross method)
2. Prepare the journal entries showing what the Net Method would look like

3. In your own words explain the difference between direct write-off method and allowance method for recognizing bad debt expense

4. The trial balance before adjustment of Reservoir Company reports the following balances:

Dr. Cr.

Accounts receivable $600,000

Allowance for doubtful accounts $ 10,000

Instructions

1. Prepare the entry for estimated bad debts assuming that doubtful accounts are estimated to be 5% of accounts receivable.
2. Show the T-accounts and how you got the correct Bad Debt Expense