P8-28A (similar to) Question Help On August 31, 2018, Daisy Floral Supply had a $150,000 debit balance in Accounts Receivable and a $6,000 credit balance in Allowance for Bad Debts. During September, Daisy made: Sales on account, $570,000. Ignore Cost of Goods Sold. Collections on account, $604,000. Write-offs of uncollectible receivables, $8,000. Read the requirements. Sep 30 Bad Debts Expense 5,700 Allowance for Bad Debts 5,700 Recorded bad dobis expense for the period. 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.) Allowance for Bad Debts Accounts Receivable Aug. 31, 2018 Bal. * Requirements Bad Debt Expense 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). 2. Using the same facts, assume that Daisy used the direct write-off method to account for uncollectible receivables. Journalize all September entries using the direct while-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 Daisy 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 not accounts receivable would Daisy report on ils September 30, 2018, balance sheet under each of the two methods? Which amount is more realistic? Give your reason. Choose from any list or enter any number in the input fields and then click Check Answer. 8 parts Clear All P8-28A (similar to) Question Help On August 31, 2018, Daisy Floral Supply had a $150,000 debit balance in Accounts Receivable and a $6,000 credit balance in Allowance for Bad Debts. During September, Daisy made: Sales on account, $570,000. Ignore Cost of Goods Sold. Collections on account, $604,000. Write-offs of uncollectible receivables, $8,000. Read the requirements. Sep 30 Bad Debts Expense 5,700 Allowance for Bad Debts 5,700 Recorded bad dobis expense for the period. 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.) Allowance for Bad Debts Accounts Receivable Aug. 31, 2018 Bal. * Requirements Bad Debt Expense 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). 2. Using the same facts, assume that Daisy used the direct write-off method to account for uncollectible receivables. Journalize all September entries using the direct while-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 Daisy 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 not accounts receivable would Daisy report on ils September 30, 2018, balance sheet under each of the two methods? Which amount is more realistic? Give your reason. Choose from any list or enter any number in the input fields and then click Check Answer. 8 parts Clear All