Data table Water Way Company has experienced rapid growth in its first few morths of operations and has had a significant inctease in customors renting canoes and purchasing T-shitts Many of these customers are asking for ciedit terms. Arya and Zeus Wilson, stockholders and company managars, have decided it is bime to review their business transactions and updato some of their business practices. Their first step is to make decisions about handling accoants recolvable. So far, year to date credt sales have been 521 , 000. A review of outstanding receivables resulted in the following aging schedule. (Click the icon to viow the aging schedale) Read the ressilitements: Requirement 1. The company wants to use the alowance mothod to esklmate had dobts Assume a zero beginning balance for Alowance for Bad Debts a. Dotermine the extinated bad debts expense under the percent-od-sales metheds at Jone 30,2025 . Assume that 6% of credit sales will not bo collecied iRound te the nedrent Requirements 1. The company wants to use the allowance method to estimate bad debts. Determine the estimated bad debts expense under the following methods at June 30,2025 . Assume a zero beginning balance for Allowance for Bad Debts. Round to the nearest dollar. a. Percent-of-sales method, assuming 6% of credit sales will not be collected. b. Percent-of-receivables method, assuming 19% of receivables will not be collected. c. Aging-of-receivables method, assuming 20\% of invoices 1-30 days will not be collected, 30% of invoices 3160 days, 35% of invoices 6190 days, and 60% of invoices over 90 days. 2. Journalize the entry at June 30,2025 , to adjust for bad debts expense using the percent-of-sales method. 3. Journalize the entry at June 30,2025 , to record the write-off of the Earth Rock Daycare invoice. 4. At June 30,2025 , T-accounts for Accounts Receivable and Allowance for Bad Debts before Requirements 2 and 3 have been opened for you. Post entries from Requirements 2 and 3 to those accounts. Assume a zero beginning balance for Allowance for Bad Debts. 5. Show how Water Way Company will report net accounts receivable on the balance sheet on June 30,2025