On August 31, 2018 Osthan Ponal Supply Toda 5175,000 in consecivable and 7 ore in web les on account. 5520,000. Cost of Goode sol Cloon on account, 152,000 Will of uncollectible recevoilo. 4.000 Radmed Requirement une anting the who can Dowwe Tout to the accounts begin by journamento ng the wine mutterworth Salon count 5590.000 ore Cost of Goods Date Accounts and nation Detail Credit Sep P9-35B (similar to) On August 31, 2018, Orchard Floral Supply had a $175,000 dobit balance in Accounts Receivable and a 57.000 credit balance in lowance for Bad Debt. During commerce Sales on account, 5520.000. Ignore Cost of Goods Sold Collections on account, $582,000. Write-offs of uncollectible receivables, $4.500. Read the requirements Requirement 1. Journal o all September entries using the allowance method. Bad Debts Expense was estimated at 3 of credit sales Show all September in Account i Requirements ou 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). 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 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. 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 Print Done and then click Check Answer. Clear All