During its first year of operations, Chocolate Passion earned net credit sales of $345,000. Industry experience suggests that bad debts will amount to 2% of net credit sales. At December 31, 2016, accounts receivable total $40,000. The company uses the allowance method to account for uncollectibles. 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, 2016. 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 Dec. 31 Requirement 2. Show how to report accounts receivable on the balance sheet at December 31, 2016. Balance Sheet (Partial): Current Assets: Requirement 1. Journalize Chocolate's Bad Debts Expense using the percent-of-sales method. (Record de Date Accounts and Explanation Debit Credit Dec. 31 heet at December 31, 2016. Requirement 2. Sho Collected cash on account. Balance Sheet (P Record sales for the year. Current Assets: Recorded bad debts expense for the period. Reinstated previously written off account. Wrote off uncollectible accounts. Requirement 1. Journalize Chocolate's Bad Debts Expense using the percent-of-sales method. (Record de Date Accounts and Explanation Debit Credit Dec. 31 Accounts Payable Accounts Receivable Allowance for Bad Debts Bad Debts Expense Requirement 2. Shc Cash Sales Revenue Balance Sheet (P heet at December 31, 2016. Current Assets: Requirement 2. Show how to report accounts receivable on the balance sheet at December 31, 2016. Balance Sheet (Partial): Current Assets: Less: Accounts Payable Less: Accounts Receivable Less: Allowance for Bad Debts Less: Cash Less: Revenue Less: Bad Debts Expense