P9-43 Accounting for uncollectible accounts using the allowance method This problem continues the Canyon Canoe Company situation from Chapter 8. Canyon Canoe Company has experienced rapid growth in its first few months of operations and has had a significant increase in customers renting canoes and purchasing T-shirts. Many of these customers are asking for credit terms. Amber Wilson, owner and company manager, has decided it is time to review the business transactions and update some of the business practices. Her first step is to make decisions about handling accounts receivable. So far, year to date credit sales have been $15,500. A review of outstanding receivables resulted in the following aging schedule: 1. The company wants to use the allowance method to estimate bad debts. Determine the estimated bad debts expense under the following methods at June 30 , 2019. Assume a zero beginning balance for Allowance for Bad Debts. Round to the nearest dollar. a. Percent-of-sales method, assuming 4.5% of credit sales will not be collected. b. Percent-of-receivables method, assuming 22.5% of receivables will not be collected. c. Aging-of-receivables method, assuming 5\% of invoices 1-30 days will not be collected, 20% of invoices 3160 days, 40% of invoices 6190 days, and 75% of invoices over 90 days. 2. Journalize the entry at June 30,2019 , to adjust for bad debts expense using the percent-of-sales method. 3. Journalize the entry at June 30, 2019, to record the write-off of the Early Start Dascare invoice. 4. At June 30, 2019, open T-accounts for Accounts Receivable and Allowance for Bad Debts before Requirements 2 and 3. Post entries from Requirements 2 and 3 to those accounts. Assume a zero beginning balance for Allowance for Bad Debts. 5. Show how Canyon Canoe Company will report net accounts receivable on the balance sheet on June 30, 2019