using the allowance method P9-30A Accounting for uncollectible accounts Learning Objectives 1, 3 (percent-of-sales) and reporting receivables on the balance sheet Delta Watches completed the following selected transactions during 2018 2. Net AR $119,800 and 2019: 2018 Estimated that bad debts expense for the year was 2% of credit sales of $450,000 and recorded that amount as expense. The company uses the allowance method. Dec. 31 Made the closing entry for bad debts expense. 31 2019 Sold merchandise inventory to Mack Smith, $400, on account. Ignore Cost of Goods Sold. Jan. 17 Jun. 29 Wrote off Mack Smith's account as uncollectible after repeated efforts to collect from him Received $400 from Mack Smith, along witha letter apologizing for being so late. Reinstated Smith's account in full and recorded the cash receipt Aug. 6 Made a compound entry to write off the following accounts as uncollectible Cam Carter, $1,400; Mike Venture, $1,200; and Russell Reeves, $400. Dec. 31 Estimated that bad debts expense for the year was 2 % on credit sales of $510,000 and recorded the expense. 31 Made the closing entry for bad debts expense. 31 Requirements 1. Open T-accounts for Allowance for Bad Debts and Bad Debts Expense, assuming the accounts begin with a zero balance. Record the transactions in the general journ (omit explanations), and post to the two T-accounts 2. Assume the December 31, 2019, balance of Accounts Receivable is $136,000 Show how net accounts receivable would be reported on the balance sheet at that date