cllection period compare to the company's credit terms? Is this good or bad for New? ents. > Problems Group A p8-27A Accounting for uncollectible accounts using the allowance Learning Objectives 1, 2, 3 (percent-of-sales) and direct write-off methods and reporting receivables on the balance sheet 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. 0,000 1. Bad Debts Expense $5,400 6,000 7,000 3,000 5,000 7,000 Write-offs of uncollectible receivables, $5,000. Requirements 1. Journalize all September entries using the allowance method. Bad debes expense was estimatedat 1% of redit sales. Showall September activityin Accounts Receivable, Allowance for Bad Debts, and Bad Debts Expense (post to these T-accounts) mine 16. 0? mals.) ble 2. Using the same facts, assume that Lily used the direct write-off method to account for uncollectible receivables. Journalize all September entries using the direct write -off method. Post to Acounts Receivable and Bad Debts Expense, and show their balances at September 30, 2016. 3. What amount of Bad Debrs Expense would Lily report on its Sepember income How statement under each of the two methods? Which amount better matches exp with revenue? Give your reason. ense 4. 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