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Need help with these T- accounts, i keep getting it incorrect. On August 31, 2018, Melrose Floral Supply had a $135,000 debit balance in Accounts
Need help with these T- accounts, i keep getting it incorrect.
On August 31, 2018, Melrose Floral Supply had a $135,000 debit balance in Accounts Receivable and a $5,400 credit balance in Allowance for Bad Debts. During September, Melrose made Sales on account, S530,000. Ignore Cost of Goods Sold. . Collections on account, S573,000 . Write-offs of uncollectible recevables, S5,000 Read the requirements Requirements Journalize th Bad Debts Expense for September using the allowance method, Bad Debts Expense was est mated at 3% of credit sales. Date Accounts and Explanation Debit 1. Jcurmalize all September entries using the allowance method. Bad debls expense was Sep. 30 Bad Debls Expense 15.900 estimated at 3% of credit sales. Show all September activity in Accounts Receivable Allowance for Bad Debts, and Bad Debts Expense (post to these T-accounts) Allowance for Bad Debts 15,900 2. Using the same facts, assume that Melrose used the direct write-off method to account for uncollectible receivables. Journalize all Seplember entries using the direct write-off method. Post to Accounts Receivable and Bad Debts Expense, and show their balances at September 30, 2018. Recorded bed debts expense for the period 3. What amount of Bad Debls Expense would Melrose report on its September income statement Post all September entries in the appropriate T-accounts and cakulate the ending balance in each account. (Enter the beginning balance if under each of the two methods? Which amount better matches expense with revenue? Give your reason Accounts Receivable Allowance for Bad Debts 4. What amount of net accounts receivable would Melrose report on its September 30, 2018, Aug 31,2018 Bal. 1 balance sheet under each of the two methods? Which amount is more realistic? Give your reason 35000530000| Net credit sales PrintDone Bad Debt ExpenseStep by Step Solution
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