Happy Carrper Company has experienced repid growth in its first fow months of operations and has had a significant incroase in customers renting canoes and purchasing T-shirts. Mary of theso customers are askng for credt torms. Anya and Zorro Wison, stocktioiders and compary manegers, have docided it is time to rovitiw their business transactions and update some of their business proctices. Their first step is to make decisions about hending occounts receivable. So far, year to date credit sales have been $24,000. A review of outstanding recoivables resuled in the following aging vehedule: (Cick the iach to view the aging schedule.) Read the regicements. Requirement 1. The compary wants to use the afowance mothod to estimate bad debis. Assume a zere beginning balance for Alowance for Bad Dobla. b. Determine the estmated bad debts axpense under the percent-of-receivablos mothods at June 30,2025 . Assume that 19% of receivativs will not be colected (fhound to the nearest dolar) 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, 2025. Assume a zero beginning balance for Allowance for Bad Debts. Round to the nearest dollar. a. Percent-of-sales method, assuming 6% of credit sales will not be collected. b. Percent-of-receivables method, assuming 19% of receivables will not be collected. c. Aging-of-receivables method, assuming 15% of invoices 1-30 days will not be collected, 30% of invoices 3160 days, 35% of invoices 6190 days, and 50% of invoices over 90 days. 2. Journalize the entry at June 30,2025 , to adjust for bad debts expense using the percent-of-sales method. 3. Journalize the entry at June 30,2025 , to record the write-off of the Earth Rock Daycare invoice. 4. At June 30, 2025, 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 Happy Camper Company will report net accounts receivable on the balance sheet on June 30, 2025