During its first year of operations, Precious Gems Collection eaned net credit sales of $396.000 Industry experience suggests that bad debts will amount to 1% of net credit sales. At December 31, 2018, accounts receivable total $36.000. The company uses the allowance method to account for uncollectibles. Read the requitements Requirement 1. Journalize Precious Gems' 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 B Requirement 2. Show how to report accounts receivable on the balance sheet at December 31, 2018 Balance Sheet (Partial): Current Assets