On August 31, 2018, Orchard Floral Supply had a $155.000 debit balance in Accounts Receivable and a $6.200 credit balance in Allowance for Bad Debts. During September, Orchard made: Sales on account, 580.000. Ignore Cost of Goods Sold. . Collections on account, $813,000 .Write-offs of uncollectible receivables. $9,000. Read the requirements Requirement 1. Journalize all September entries using the allowance method. Bad Debts Expense was estimated at 1% 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. $580.000. Ignore Cost of Goods Sold. Date Accounts and Explanation Debit Credit Sep 30 Collections on account, $813,000 Date Accounts and Explanation Debit Credit Sep. 30 Write-offs of uncollectible receivables $9.000. Date Accounts and Explanation Debit Credit Sep. 30 On August 31, 2018, Orchard Floral Supply had a $155.000 debit balance in Accounts Receivable and a $8.200 credit balance in Allowance for Bad Debts. During September, Orchard made: - Sales on account, S580,000. Ignore Cost of Goods Sold. . Collections on account, 5813,000. .Write-offs of uncollectible receivables. $9,000. Read the requirements Write-offs of uncollectible receivables. $9,000. 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 1% 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 Choose from any list or enter any number in the input fields and then continue to the next question. Type here to search O 9:10 PM 5/16/2020 4 On August 31, 2018, Orchard Floral Supply had a $155.000 debit balance in Accounts Receivable and a $6.200 credit balance in Allowance for Bad Debts. During September, Orchard made: Sales on account, $580.000. Ignore Cost of Goods Sold. . Collections on account, $813.000. - Write-offs of uncollectible receivables. $9,000. Read the requirements 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, S580,000. Ignore Cost of Goods Sold. Date Accounts and Explanation Debit Credit Sep 30 Collections on account, $813,000. Date Accounts and Explanation Debit Credit Sep. 30 On August 31, 2018, Orchard Floral Supply had a $155.000 debit balance in Accounts Receivable and a $6.200 credit balance in Allowance for Bad Debts. During September, Orchard made: . Sales on account. $580,000. Ignore Cost of Goods Sold. . Collections on account, 3813,000 . Write-offs of uncollectible receivables. 59.000. Read the requirements Write-offs of uncollectible receivables. $9,000. 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 better matches expense with revenue because the expense is recorded 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.) 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 better matches expense with revenue because the expense is recorded 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 "o" in the appropriate column.) Allowance Method Direct Write-Off Method Balance Sheet (Partial): Accounts receivable Less: Allowance for Bad Debts Net accounts receivable under the is more realistic because it shows the amount of the receivables that the company Choose from any list or enter any number in the input fields and then continue to the next