On August $31,2025,$ Amsterdam Floral Supply had a $$155,000$ debit balance in Accounts Receivable and a $$6,200$ credit balance in Allowance for Bad Debts. During September, Amsterdam Floral Supply made:

Sales on account, $$590,000.$ Ignore Cost of Goods Sold.

Collections on account, $$627,000.$

Write$-$offs of uncollectible receivables, $$7,000.$

Read the requirements.

Requirement $1.$ Journalize all September entries using the allowance method. Bad Debts Expense was 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$).$

Begin by journalizing all September entries using the allowance method. $($Record debits first, then credits. Select the explanation on the last line of the journal entry table.$)$

Sales on account, $$590,000.$ Ignore Cost of Goods Sold.

$\backslash$table$[[$Date$,$Accounts and Explanation,Debit,Credit$],[$Sep$.30,,,],[,,,],[,,,],[,,,],[,,,]]$

Requirements

Journalize all September entries using the allowance method. Bad debts expense was 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$).$

Using the same facts, assume that Amsterdam Floral Supply used the direct write$-$off method to account for uncollectible receivables. Journalize all September entries using the direct write$-$off method. Post to Accounts Receivable and Bad Debts Expense, and show their balances at September $30,2025.$

What amount of Bad Debts Expense would Amsterdam Floral Supply report on its September income statement under each of the two methods? Which amount better matches expense with revenue? Give your reason.

What amount of net accounts receivable would Amsterdam Floral Supply report on its September $30,2025,$ balance sheet under each of the two methods? Which amount is more realistic? Give your reason.