On August 31, 2018, Rosebud Floral Supply had a $145,000 debit balance in Accounts Receivable and a $5,800 credit balance in Allowance for Bad Debts. During September, Rosebud made: Sales on account, $590,000. Ignore Cost of Goods Sold. Collections on account, $627,000. Write-offs of uncollectible receivables, $6,000. Read the requirements. 1 Requirements - X 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). 2. Using the same facts, assume that Rosebud 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 Rosebud 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 Rosebud report on its September 30, 2018, balance sheet under each of the two methods? Which amount is more realistic? Give your reason. Print Print Done Done Requirement 1. Joumalize all September entries using the allowence method. Bad Debts Expense Wes estimated at 4% of credit sales. Show all September activity in Accounts Receivable, Allowance for Bed Debts, and Bad Debts Expense (post to these T-accounts). Begin by joumalizing 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. Date Accounts and Explanation Debit Credit Sep. 30 Collections on account, S827000. Date Accounts and Explanation Debit Credit Sep 30 Write-offs of uncollectible receivables, S6,000 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 4% 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 facls, assume tha Rosebud used the drecl write-off melu to account for unvulectibles receivables. Journizu all September entries using the direct write-crimetud. Puet to Accounts Receivable and Bad Debis expense, and show their bakves al September 30, 2018. Begin by joumaizing al 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, S590,000. Ignore Cost of Goods Sald. Date Accounts and Explanation Debit Credit Sep 30 Collections on Amunt, $627,000 Date Accounts and Explanation Sep. 20 Wnte-atts of uncollectible recevabics, $6.000. Accounts and explanation Credit Son 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 Rosebud 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 Rosebud would report on its September 30, 2018 income statement under each of the two methods. Allowance Method Direct Write-Off Method Income Statement (Partial) Bad Debts Expense Bad Debts Expense under the V better matches expense with revenue because the expense is recorded Requirement 4. What amount of net accounts receivable would Rosebud 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 Rosebud 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 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