On 31 May, Roseville Floral Supply had a $155 000 debit balance in Accounts Receivable and a $ 6200 credit balance in Allowance for doubtful debts. During June, Roseville made: A) sales on credit, $590 000

B)collection on account, $627 000

C) write-offs of bad debts, $7000

Requirement:

1. Record journal entry for sales and collection on account. Then record bad debt expense (3% of credit sales) and write-offs of customer accounts for June using the allowance method.(Marks: 4)

2. Record bad debt expense for June using the direct write-off method.(Marks: 2)

3. What amount of bad debt expense would Roseville report on its June income statement under each of two methods

Please help me understand this questions. Thanks Tutor