On August 31?, 2018?, Orchard Floral Supply had a $ 150 comma 000 debit balance in Accounts Receivable and a $ 6 comma 000 credit balance in Allowance for Bad Debts. During September?, Orchard ?made: times Sales on? account, $ 540 comma 000. Ignore Cost of Goods Sold. times Collections on? account, $ 581 comma 000. times ?Write-offs of uncollectible? receivables, $ 9 comma 000. Sales on? account, $ 540 comma 000. Ignore Cost of Goods Sold. Date Accounts and Explanation Debit Credit Sep. 30 Collections on? account, $ 581 comma 000. Date Accounts and Explanation Debit Credit Sep. 30 ?Write-offs of uncollectible? receivables, $ 9 comma 000. Date Accounts and Explanation Debit Credit Sep. 30 Journalize the Bad Debts Expense for September using the allowance method. Bad Debts Expense was estimated at 3?% of credit sales. Date Accounts and Explanation Debit Credit Sep. 30 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 Orchard 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, $ 540 comma 000. Ignore Cost of Goods Sold. Date Accounts and Explanation Debit Credit Sep. 30 Collections on? account, $ 581 comma 000. Date Accounts and Explanation Debit Credit Sep. 30 ?Write-offs of uncollectible? receivables, $ 9 comma 000. 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 Requirement 3. What amount of Bad Debts Expense would Orchard 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 Orchard 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 ? allowance method direct write-off method better matches expense with revenue because the expense is recorded ? in the same period sales are made when the exact amount of bad debt is known when the receivable is collected . Requirement 4. What amount of net accounts receivable would Orchard 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 Orchard 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 Accounts receivable Less: Allowance for Bad Debts Net accounts receivable under the ? allowance method direct write-off method is more realistic because it shows the amount of the receivables that the company ? expects to collect expects to write-off wants to collect wants to sell .