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On August 31, 2024, Gbson Floral Supply had a $150,000 deba balance in Accounts Receivable and a $6,000 creda balance in Allowance for Bad Debts.

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On August 31, 2024, Gbson Floral Supply had a $150,000 deba balance in Accounts Receivable and a $6,000 creda balance in Allowance for Bad Debts. During September, Gibson made: - Sales on account, $560,000. Ignore Cost of Goods Sold. - Collections on account, $598,000. - Write-offs of uncolectible recelvables, $2,000. Rioad the tecuirsments. Requirement 1. Joumalize all September entries using the allowance method. Bad Debts Expense was estimated at 3\% of credit sales. Show al September activity in Accounts Receivable, Alowance for Bad Dobts, and Bad Debts Expense (post to these T-accounts). Begin by journalzing al September entries using the nllowance method. (Record debits first, then crodits. Select the explanation on the last line of the journal antry table.) Sales on account, 5560,000 . Ignore Cost of Goods Sold. Write-onts of uncollectible receivables, $2,000. tost al September entries in the appropriate T-accounts and calculate the ending balance in each account (Enfer the beginning balance if applicable. Then pest the transactions and calculate the ccourt balance at September 30,2024. Requirement 2. Using the same facts, assume that Gibson used the direct write-of method to account for inoolectible receivabies. Joumakz all September entries using the direct inte-off method Post to Accounts Receivable and Bad Dobts Expense, and show their batances at September 30,2024 Begin by joumalring at Septnmber entries using the direct writo-off method. (Plocord debts first, then credts. Select ne oxplanason on the last ins of tho journal entry tabile ) Sales on account, $560,000. Ignore Cost of Goods Sold. Collections on account, $598,000. Write-offs of uncollectible receivables, $2,000. Write-0tis of uncollectible receivables, $2,000. Post to Accounts Receivable and Bad Debts Expense and show their balances at September 30, 2024, (Entor the beginning balance if applicable. Then post the transacticns and calculate the account balance at September 30,2024 ) Requirement 3. What amount of Bad Debts Expense would Gibson report on its September income statement under each of the two methods? Which amount better manches expenso with revenue? Give your reason. Enter the ainount of bad debt exbense Gibson would recort on is Sebtember 30.2024 income statement under each of the two methods. Requirement 3. What amount of Bad Debts Expense would Gibson report on its September income statement under each of the two methods? Which amount better matches oxpense with revenue? Give your reason. Enter the amount of bad debt expense G bson would repert on its September 30.2024 income statement under each of the two mechods. Bad Debts Exponse under the better matches expense with revenue because the expense is recorded Requirement 4. What amount of not accounts receivable would Gibson report on its September 30,2024 , balance sheet under each of the two methods? Which amount is more realistic? Give you reason. Enter the amount of net accounts receivgble Gibson would report on its September balance sheet under each of the two methods. (Complete al answer boves. For accounts with a so balance, man sure to onter " "O" in the appropriate coluth.) Net accounta receivable under the is more realatic because it shows the amount of the recevables that the company 1. Joumalize 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 Gibson 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 30,2024 . 3. What amount of Bad Debts Expense would Gibson 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 Gibson report on its September 30, 2024; balance sheet under each of the two methods? Which amount is more realistic? Give your reason

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