Goluer Lake Company has experienced rapid growth in its first few months of operations and has had a significant increase in customer renting cries and purchasing T-shirts. Many of these customers are asking for credit terms. Anya and Zavier Wieon, stockholders and corrpany managers, have decek time to review their business transactions and update some of their business practices. Their first step is to make decisions about handing accounts receivable. So far, year to dato credit sales have been $17.000. A review of outstanding receivables multed in the following aging schedule: Click the icon to view the aging schedule.) Read the regulamente Requirement 1. The company wants to use the allowance method to estimate had dots. Assume a zen beginning balance for Allowance for Bad Dents. A. Determine the estimated bad debts expense under the percent-of-sales methods at June 30 2019 Assume that 5% of credit sales will not be collected (Round to the nearest dollar) Method Estimated Bad Debts a. Percantorales b. Determine the estimated bad debts expense under percent-of-receivables methods at June 30, 2019. Assume that 17% of receivables wil not be collected. {Round to the nearest dollar. Method Estimated Bad Debts b. Percent of receivables ELEVA c. Determine the estimated bad dants expense under the aging-ot-receivabies methods at June 30, 2019 Assume that 20% of imaces 1-30 days will not be colected, 30% of invoices 31-60 days, 25% of raices 61-90 days, and 40% of invoices over 50 days. (Round Intermediary computations and your final answer to the nearest dolar Method Estimated Bad Debts c. Aging of receivables Requirement 2. Journaltze the entry at June 30, 2015, ha adjust for bad debts expense using the percent-of-sales method. Record debits first the credits. Select the explanation on the last line of the journal entry table. Date Accounts and Explanation Debit Credit Jun 30 Requirement 3. Journalize the entry at June 30, 2019, to record the write-off of the Little Cub Daycare invoice. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Assume that the Little Cub Daycare invoice makes up the entire Little Cub Daycare receivable balance. Continue to assume that the percent-of-sales method is in use.) Date Accounts and Explanation Debit Credit Jun. 30 Requirement 4. At June 30, 2019, T-accounts for Accounts Receivable and Allowance for Bad Debts before Requirements 2 and 3 have been opened for you. Post entries from Requirements 2 and 3 to those accounts. Assume a zero beginning balance for Allowance for Bad Debts. For each account, enter the balance, "Bal.", prior the Jun. 30 entries on the first line of the T-account. Post the two Jun. 30 entries, using "Jun. 30" posting references, on the second lines of the T-accounts. Use the final line of the T-accounts to enter the adjusted balances, along with a "Bal." reference. (If an account has a zero balance, select the "Bal." reference and enter "0" on the appropriate side of the T-account.) Accounts Receivable Allowance for Bad Debts Requirement 5. Show how Golden Lake Company will report net accounts receivable on the balance sheet on June 30, 2019. (Continue to assume that the percent-of-sales method is in use and that the entries from Requirements 2 and 3 have been posted to the ledger.) Balance Sheet (Partial): Current Assets: Requirements Data table re Cre Age of Accounts as of June 30, 2019 1-30 31-60 61-90 Over 90 Total Days Days Days Days Balance Customer Name Little Lion's Club $ 500 $ 500 Tee Cup 800 $ 300 1,100 Little Cub Daycare $ 700 700 1. The company wants to use the allowance method to estimate bad debts. Determine the estimated bad debts expense under the following methods at June 30, 2019. Assume a zero beginning balance for Allowance for Bad Debts. Round to the nearest dollar. a. Percent-of-sales method, assuming 5% of credit sales will not be collected. b. Percent-of-receivables method, assuming 17% of receivables will not be collected. c. Aging-of-receivables method, assuming 20% of invoices 1-30 days will not be collected, 30% of invoices 31-60 days, 35% of invoices 61-90 days, and 40% of invoices over 90 days. 2. Journalize the entry at June 30, 2019, to adjust for bad debts expense using the percent-of-sales method. 3. Journalize the entry at June 30, 2019, to record the write-off of the Little Cub Daycare invoice. 4. At June 30, 2019, T-accounts for Accounts Receivable and Allowance for Bad Debts before Requirements 2 and 3 have been opened for you. Post entries from Requirements 2 and 3 to those accounts. Assume a zero beginning balance for Allowance for Bad Debts. 5. Show how Golden Lake Company will report net accounts receivable on the balance sheet on June 30, 2019. Pavilion Pond 1,300 1,300 Golden Years Center 900 900 sbd North Yacht Club 400 400 unt. Oak Shirts 800 400 Fiat 1,200 3,000 Zen's Marina 1,000 1,000 1,000 $ 4,800 $ 1,700 $ 1,900 $ 700 $ 9,100 Total Print Done es Print Done