i need help with this question please,

i don't understand the 25%

and when it says she has determined that an allowance for doubtful debt of 8% of the outstanding accounts receivable is required

= 75 % Johanna owns Campus Fashion. From its inception Campus Fashion has sold goods on 25% cash and the remaining on a 90 day credit basis. At 31 December 2018, the trial balance of Campus Fashion contained the following amounts before any adjustments; For Ageing method. Debits Credits Allowance for Doubtful Debts 2,310 Sales Revenue 796,500 Credit Sales Return and Allowances 43,200 The beginning balance of Accounts Receivable at 1 January 2018 was $563,000 and Johanna had collected $590,000 from credit sales during 2018. The following Accounts Receivable were deemed uncollectible during 2018: net credit sales Simon Fashion $14,316 Gleason Footwear $12,384 $2 6 750 Required: 1) Based on the information given, provide the general journal entry required to write off the bad debts . 2) Johanna currently estimates the bad debts expense based on 6% of net credit sales revenue. She has decided to compare the current method with an ageing method of the accounts receivable method. Johanna after analysing industry averages and prior year's activities, she has determined that an Allowance for Doubtful Debt of 8% of the outstanding accounts receivable is required. a. Prepare the general journal entry to adjust the Allowance for Doubtful Debts at 31 December 2018 under (Show your workings); i. The net credit sales method Mi. The aging of accounts receivable method b. Determine the balance in the Allowance for Doubtful Debts account under both methods (Show your workings) * net credit= $500 000 >Llanur Ageing = $4000