Problems Group A Receivables 5: P9-28A Accounting for uncollectible accounts using the allowance (percent- of-sales) and direct write-off methods and reporting receivables on the Learning Objectives 1, 2, balance sheet On August 31, 2018, Bouquet Floral Supply had a $140,000 debit balance in Accounts Receivable and a $5,600 credit balance in Allowance for Bad Debts. During Septem- 1. Bad Debts Expense $11,00 2 ber, Bouquet made: Sales on account, $550,000. Ignore Cost of Goods Sold. Collections on account, $584,000. Write-offs of uncollectible receivables, $4,000. Requirements . Journalize all September entries using the allowance method. Bad debts expense was estimated at 2% of credit sales. Show all September activity in Accounts Receiv- able, Allowance for Bad Debts, and Bad Debts Expense (post to these T-accounts). 2. Using the same facts, assume that Bouquet 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 on its September 3. What amount of Bad Debts Expense would Bouquet report income statement under each of the two methods? Which amount better matches expense with revenue? Give your reason 4What amount of net accounts receivable would Bouquet report on its September 30, 2018, balance sheet under each of the two methods? Which amount is more realistic? Give your reason. Learning Obje method