Save Homework: Week Five: Chapter 8: Problems Score: 0 of 1 pt 1 of 7 (0 completel HW Score: 0%, 0 of 7 pts P9-27A (similar to) Question Help On August 31, 2016. Forget - me - not Floral Supply had a $165,000 debit balance in Accounts Receivable and a $6,600 credit balance in Allowance for Bad Debts. During September, Forget-me-not 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 Incor D/1) Requirement 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). (Record debits first, then credits. Select the explanation on the last line of the journal entry table) Begin by journalizing all September entries using the allowance method. Sales on account, $590,000. Ignore Cost of Goods Sold. Date Accounts and Explanation Debit Credit Sep. 30 Choose from any list or enter any number in the input fields and then click Check Answer Check Answer act Us Clear All parts f Requirements 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 Forget-me-not 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, 2016. 3. What amount of Bad Debts Expense would Forget-me-not 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 Forget-me-not report on its September 30, 2016, balance sheet under each of the two methods? Which amount is more realistic? Give your reason. Print Done