During its first year of operations, Chocolate Passion earned net credit sales of $316,000. Industry experience suggests that bad debts will amount to 3% of net credit sales. At December 31, 2018, accounts receivable total $35,000. The company uses the allowance method to account for uncollectibles. Read the requirements. Requirement 1. Journalize Chocolate's Bad Debts Expense using the percent-of-sales method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit i X Dec. 31 Requirements 1. Journalize Chocolate's Bad Debts Expense using the percent-of-sales method. 2. Show how to report accounts receivable on the balance sheet at December 31, 2018. Collected cash on account. Print Done Record sales for the year. Recorded bad debts expense for the period. Reinstated previously written off account. Wrote off uncollectible accounts. Choose from any list or enter any number in the input fields and then click Check Answer. ? 1 part remaining Clear All Check Answer Date Accounts and Explanation Debit Credit Dec. 31 Accounts Payable Accounts Receivable Allowance for Bad Debts Bad Debts Expense Cash Sales Revenue