Requirement 1. The T-accounss for Allowanoe far Bad Debti and Bod Debts Expense Rave been opened for you, asturving the aocounts bogin with a zoro balance. Record fne transacfions in the Cosing entry, Wio = Wine-ofl.) Begn by tecording the 2024 transactions in the generat joumat. Dec. a1: Lwimated han bis decke expense foe the year was 3% of codi saies of s400.000 and recorded that anourk as experse. The scewary usas the olowance method. Requirements 1. The T-accounts for Allowance for Bas Debts and Bad Dobe Exjense have been opened for you, assuring the aosounts begin with a rere balance. Feoord the transactions in the generail journal forit explanationsk, and poat to the two T-ancounts 2. Assume the December 31, 2025, balarce of Accounts Recevable ia \$132.006. Show how net anopounts recelvablo would be reported on the bajance sheet at that date. Eeta Wuirhes colreleled the folowing serected tarsactions during 2 tre 4 and 2025 : (1) (Cick twe kon to yiow the eravesctions.) Read the reverersents More info 2024 Dec. 31 Made the slowing entry for bad debte expense. 2025 Jun. 29 Wrie of Marty Whate's acocurt as incolectole aher repeated etocts to oolloct thom him. Dec. 31. Made a compound eniry to write of the followirg aconurts as uncolectele: Ence Kally, 31, 600, Martha Marny, $1,300, and Putsel Wosheths $100. Dec.31 Estmated than bad debls evpenee for the year was 3% on debit sabes of 34800000 and reoordad the Dec. 31 Made the closiog entry for bad debti expenta. Wicked Wid Company tas experienced rapid growth in its first few months of operations and has had a significant increase in caatomers rening canoes and purchasing Tiahirts, Mary of these astomen avo osking for credir terms. Ashiey and Zed Wison, stockholders and company managers, have decided it is time to revirw their busionss traneactions and update some of their business acing schedule: (iCick the icon to view the aging schodile?) Read the resuliemants Peeulement 1. The company wants to use the alowance mefod to estimate bad dobts. Assume a zero begrring balance for Alowance for Bad Deess Data table Requirements 1. The company warts to use the allowance method to estimate byd debes. Debermine the eatimated bed debis experse under the foltowing mothode at Jure 30,2025 . Aseume at zero beginien bolance tor Alowance for Bad Debts. Round to the newinst dollar. a. Percent-of-sales mwhod, assuming 5% of credit swies wil not be colected. b. Percent-of-feceivasies method, assiming 16% of receivables all not be collocthis e. Aging-of-eceivabios mothed, assuming 105 of evoices 1.30 daya all not be colncted, 15% of invoices 31.60 duys, 30% of moices 61.60 dirys, and cosk of. inveicas over 90 dayn. 2. Journatce the entry af June 30, 2026, so aquat tar bad dobts appense using the Bercont-ol-tales method. 3. Journalize the entry af dure 30, 20es, to recers the writeoll of the Dewn Dapcare invice 4. At Jhne 30, 2025 , Traccounts for Acceunts Receivable and Alowance for Bad Debes before Requerements 2 and 3 have been opened foe you post entries from Requirements 2 and 3 to those accoures. Assume a zero beginning balanco for Allowance for Bas: Debts. 5. Show how Waked Wid Conpay will report net acoounts receivable on the busange
