Question Completion Status: QUESTION 2 . . On September 30, King's Tennis Equipment had a $210,000 balance in Accounts Receivable. During October, King's Tennis Equipment had the following transactions: Sales of $510,000, all on credit. Ignore cost of goods sold. Collections on account, $525,000 Write-offs of uncollectible receivables, $5,000. Required: (a: 10 points; b: 5 points; c: 5 points; d: 10 points) a. Assume that King's Tennis Equipment uses the allowance method to account for uncollectible accounts and that there was a $6,300 credit balance in the allowance account on September 30. Next, assuming that bad debt expense is estimated at 4% of credit sales, prepare the adjusting journal entry to record bad debts expense b. Suppose that instead of the allowance method, King's Tennis Equipment uses the direct write-off method to account for uncollectible receivables. Prepare the journal entry to record bad debts expense. c. What amount of Bad Debt Expense would King's Tennis Equipment report on its October income statement under each of the two methods? Which amount better matches expense with revenue? Give your reasoning d. What amount of net accounts receivable would King's Tennis Equipment report on its October 31 balance sheet under each of the two methods? Which amount is more realistic? Give your reasoning. Attach File Browse Local Files Browse Content Collection Click Save and Submit to send ai