During its first year of operations, Fall Wine Tour earned net credit sales of $382,000. Industry experience suggests that bad debts will amount to 2% of net credit sales. At December 31, 2016, accounts receivable total $45,000. The company uses the allowance method to account for uncollectibles. Requirements 1. Journalize Fall'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 Fall'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