Need answered asapDuring its first year of operations, Winter Retreats earned net credit sales of $306,000. Industry experience suggests that bad debts will amount to 3% of net credit sales. At December 31, 2024, accounts receivable total $45,000. The company uses the allowance method to account for uncollectibles.

During its first year of operations, Winter Retreats eamed net credit sales of $306,000. Industry experience suggests that bad debts will amount to 3% of net credit sales. At December 31,2024 accounts receivable total $45,000. The company uses the allowance method to account for uncollectibles. Read the Requirements 1. Journalize Winter's Bad Debts Expense using the percent-of-sales method. 2. Show how to report accounts receivable on the balance sheet at December 31, 2024