vorable for the company? - Problems Group B P9-35B Accounting for uncollectible accounts using the allowance (percent- of-sales) and direct write-off methods and reporting receivables on the Lear balance sheet On August 31, 2018, Forget-Me-Not Floral Supply had a $140,000 debit balance in Accounts Receivable and a $5,600 credit balance in Allowance for Bad Debts. During September, Forget-Me-Not made the following transactions: 1. S Rec Sales on account, $530,000. Ignore Cost of Goods Sold. Collections on account, $573,000. Write-offs of uncollectible receivables, $6,000. Requirements 1. 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 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, 2018. 3. What amount of Bad Debts Expense would Forget-Me-Not report on its Sep- tember income statement under each of the two methods? Which amount better matches with revenue? Give your reason. expense 4. What amount of net accounts receivable would Forget-Me-Not report on its Sep- tember 30, 2018, balance sheet under each of the two methods? Which amount is more realistic? Give your reason