During its first year of operations, Spring Garden Plans earned net credit sales of $$335,000.$ Industry experience suggests that bad debts will amount to $2\%$ of net credit sales. At December $31,2024,$ accounts receivable total $$37,000.$ The company uses the allowance method to account for uncollectibles.

Read the requirements.

Requirement $1.$ Journalize Spring'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.$)$

$\backslash$table$[[$Date$,$Accounts and Explanation,Debit,Credit$],[$Dec$.,,,]]$

Requirement $2.$ Show how to report accounts receivable on the balance sheet at December $31,2024.$

Balance Sheet $($Partial$)$:

Current Assets:

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