Journalize all September entries using the allowance method. Bad debts expense was estimated at $1\%$ of credit sales. Show all September activity in Accounts Receivable, Allowance for Bad Debts, and Bad Debts Expense $($post to these T$-$accounts$).$

Using the same facts, assume that Rosebud 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 $30,2024.$

What amount of Bad Debts Expense would Rosebud report on its September income statement under each of the two methods? Which amount better matches expense with revenue? Give your reason.

What amount of net accounts receivable would Rosebud report on its September $30,2024,$ balance sheet under each of the two methods? Which amount is more realistic? Give your reason.