During its first year of operations, Precious Gems Collection earned net credit sales of $332,000. Industry experience suggests that bad debts will amount to 2% of net credit sales. At December 31,2024 , accounts receivable total $35,000. The company uses the allowance method to account for uncollectibles. Read the requirements. 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.) Requirements 1. Journalize Precious Gems' Bad Debts Expense using the percent-of-sales method. 2. Show how to report accounts receivable on the balance sheet at December 31, 2024