On August 31, 2018, Daisy Floral Supply had a $135,000 debit balance in Accounts Receivable and a $5,400 credit balance in Allowance for Bad Debts. During September, Daisy made: Sales on account, $570,000. Ignore Cost of Goods Sold. Collections on account, $604,000. Write-offs of uncollectible receivables, $5,500. Read the requirements Requirement 1. Journalize all September entries using the allowance method. Bad Debts Expense was estimated at 4% 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, $570,000. Ignore Cost of Goods Sold. Date Accounts and Explanation Debit Credit Sep. 30 Collections on account, $604,000. Date Accounts and Explanation Debit Credit Sep. 30 Write-offs of uncollectible receivables, $5,500. Date Accounts and Explanation Debit Credit Sep. 30 On August 31, 2018, Daisy Floral Supply had a $135,000 debit balance in Accounts Receivable and a $5,400 credit balance in Allowance for Bad Debts. During September, Daisy made: Sales on account, $570,000. Ignore Cost of Goods Sold. Collections on account, $604,000. Write-offs of uncollectible receivables, $5,500. Read the requirements Sep. 30 Journalize the Bad Debts Expense for September using the allowance method. Bad Debts Expense was estimated at 4% of credit sales. Date Accounts and Explanation Debit Credit Sep 30 On August 31, 2018, Daisy Floral Supply had a $135,000 debit balance in Accounts Receivable and a $5,400 credit balance in Allowance for Bad Debts. During September, Daisy made: Sales on account, $570,000. Ignore Cost of Goods Sold. Collections on account, $604,000. Write-offs of uncollectible receivables, $5,500. Read the requirements Post all September entries in the appropriate T-accounts and calculate the ending balance in each account. (Enter the beginning balance if applicable. Then post the transactions and calculate the account balance at September 30, 2018.) Accounts Receivable Allowance for Bad Debts Bad Debt Expense Requirement 2. Using the same facts, assume that Daisy 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, 2018. Begin by journalizing all September entries using the direct write-off method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Sales on account, $570,000. Ignore Cost of Goods Sold. Choose from any list or enter any number in the input fields and then continue to the next question. On August 31, 2018, Daisy Floral Supply had a $135,000 debit balance in Accounts Receivable and a $5,400 credit balance in Allowance for Bad Debts. During September, Daisy made: Sales on account, $570,000. Ignore Cost of Goods Sold. Collections on account, $604,000. Write-offs of uncollectible receivables, $5,500. Read the requirements. Requirement 2. Using the same facts, assume that Daisy 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, 2018. Begin by journalizing all September entries using the direct write-off method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Sales on account, $570,000. Ignore Cost of Goods Sold. Date Accounts and Explanation Debit Credit Sep 30 Collections on account, $604,000. Date Accounts and Explanation Debit Credit Sep. 30 On August 31, 2018, Daisy Floral Supply had a $135,000 debit balance in Accounts Receivable and a $5,400 credit balance in Allowance for Bad Debts. During September, Daisy made: Sales on account, $570,000. Ignore Cost of Goods Sold. Collections on account, $604,000. Write-offs of uncollectible receivables, $5,500. Read the requirements. Write-offs of uncollectible receivables, $5,500. Date Accounts and Explanation Debit Credit Sep. 30 Post to Accounts Receivable and Bad Debts Expense and show their balances at September 30, 2018. (Enter the beginning balance if applicable. Then post the transactions and calculate the account balance at September 30, 2018.) Accounts Receivable Bad Debt Expense Choose from any list or enter any number in the innut fields and then continue to the neyt question On August 31, 2018, Daisy Floral Supply had a $135,000 debit balance in Accounts Receivable and a $5,400 credit balance in Allowance for Bad Debts. During September, Daisy made: Sales on account, $570,000. Ignore Cost of Goods Sold. Collections on account, $604,000. Write-offs of uncollectible receivables, $5.500. Read the requirements. Post to Accounts Receivable and Bad Debts Expense and show their balances at September 30, 2018. (Enter the beginning balance if applicable. Then post the transactions and calculate the account balance at September 30, 2018.) Accounts Receivable Bad Debt Expense Requirement 3. What amount of Bad Debts Expense would Daisy report on its September income statement under each of the two methods? Which amount better matches expense with revenue? Give your reason. Enter the amount of bad debt expense Daisy would report on its September 30, 2018 income statement under each of the two methods. Income Statement (Partial) Allowance Method Direct Write-Off Method Bad Debts Expense Bad Debts Expense under the better matches expense with revenue because the expense is recorded Requirement 4. What amount of net accounts receivable would Daisy report on its September 30, 2018, balance sheet under each of the two methods? Which amount is more realistic? Give your reason. Enter the amount of net accounts receivable Daisy would report on its September balance sheet under each of the two methods. (Complete all answer boxes. For accounts with a $0 balance, make sure to enter "0" in the appropriate column.) Balance Sheet (Partial): Allowance Method Direct Write-Off Method Choose from any list or enter any number in the input fields and then continue to the next question. On August 31, 2018, Daisy Floral Supply had a $135,000 debit balance in Accounts Receivable and a $5,400 credit balance in Allowance for Bad Debts. During September, Daisy made: Sales on account, $570,000. Ignore Cost of Goods Sold. Collections on account, $604,000. Write-offs of uncollectible receivables, $5,500. Read the requirements Requirement 1. Journalize all September entries using the allowance method. Bad Debts Expense was estimated at 4% 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, $570,000. Ignore Cost of Goods Sold. Date Accounts and Explanation Debit Credit Sep. 30 Collections on account, $604,000. Date Accounts and Explanation Debit Credit Sep. 30 Write-offs of uncollectible receivables, $5,500. Date Accounts and Explanation Debit Credit Sep. 30 On August 31, 2018, Daisy Floral Supply had a $135,000 debit balance in Accounts Receivable and a $5,400 credit balance in Allowance for Bad Debts. During September, Daisy made: Sales on account, $570,000. Ignore Cost of Goods Sold. Collections on account, $604,000. Write-offs of uncollectible receivables, $5,500. Read the requirements Sep. 30 Journalize the Bad Debts Expense for September using the allowance method. Bad Debts Expense was estimated at 4% of credit sales. Date Accounts and Explanation Debit Credit Sep 30 On August 31, 2018, Daisy Floral Supply had a $135,000 debit balance in Accounts Receivable and a $5,400 credit balance in Allowance for Bad Debts. During September, Daisy made: Sales on account, $570,000. Ignore Cost of Goods Sold. Collections on account, $604,000. Write-offs of uncollectible receivables, $5,500. Read the requirements Post all September entries in the appropriate T-accounts and calculate the ending balance in each account. (Enter the beginning balance if applicable. Then post the transactions and calculate the account balance at September 30, 2018.) Accounts Receivable Allowance for Bad Debts Bad Debt Expense Requirement 2. Using the same facts, assume that Daisy 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, 2018. Begin by journalizing all September entries using the direct write-off method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Sales on account, $570,000. Ignore Cost of Goods Sold. Choose from any list or enter any number in the input fields and then continue to the next question. On August 31, 2018, Daisy Floral Supply had a $135,000 debit balance in Accounts Receivable and a $5,400 credit balance in Allowance for Bad Debts. During September, Daisy made: Sales on account, $570,000. Ignore Cost of Goods Sold. Collections on account, $604,000. Write-offs of uncollectible receivables, $5,500. Read the requirements. Requirement 2. Using the same facts, assume that Daisy 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, 2018. Begin by journalizing all September entries using the direct write-off method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Sales on account, $570,000. Ignore Cost of Goods Sold. Date Accounts and Explanation Debit Credit Sep 30 Collections on account, $604,000. Date Accounts and Explanation Debit Credit Sep. 30 On August 31, 2018, Daisy Floral Supply had a $135,000 debit balance in Accounts Receivable and a $5,400 credit balance in Allowance for Bad Debts. During September, Daisy made: Sales on account, $570,000. Ignore Cost of Goods Sold. Collections on account, $604,000. Write-offs of uncollectible receivables, $5,500. Read the requirements. Write-offs of uncollectible receivables, $5,500. Date Accounts and Explanation Debit Credit Sep. 30 Post to Accounts Receivable and Bad Debts Expense and show their balances at September 30, 2018. (Enter the beginning balance if applicable. Then post the transactions and calculate the account balance at September 30, 2018.) Accounts Receivable Bad Debt Expense Choose from any list or enter any number in the innut fields and then continue to the neyt question On August 31, 2018, Daisy Floral Supply had a $135,000 debit balance in Accounts Receivable and a $5,400 credit balance in Allowance for Bad Debts. During September, Daisy made: Sales on account, $570,000. Ignore Cost of Goods Sold. Collections on account, $604,000. Write-offs of uncollectible receivables, $5.500. Read the requirements. Post to Accounts Receivable and Bad Debts Expense and show their balances at September 30, 2018. (Enter the beginning balance if applicable. Then post the transactions and calculate the account balance at September 30, 2018.) Accounts Receivable Bad Debt Expense Requirement 3. What amount of Bad Debts Expense would Daisy report on its September income statement under each of the two methods? Which amount better matches expense with revenue? Give your reason. Enter the amount of bad debt expense Daisy would report on its September 30, 2018 income statement under each of the two methods. Income Statement (Partial) Allowance Method Direct Write-Off Method Bad Debts Expense Bad Debts Expense under the better matches expense with revenue because the expense is recorded Requirement 4. What amount of net accounts receivable would Daisy report on its September 30, 2018, balance sheet under each of the two methods? Which amount is more realistic? Give your reason. Enter the amount of net accounts receivable Daisy would report on its September balance sheet under each of the two methods. (Complete all answer boxes. For accounts with a $0 balance, make sure to enter "0" in the appropriate column.) Balance Sheet (Partial): Allowance Method Direct Write-Off Method Choose from any list or enter any number in the input fields and then continue to the next