Requirement 1. 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).

On August 31, 2018, Daisy Floral Supply had a $175,000 debit balance in Accounts Receivable and a $7,000 credit balance in Allowance for Bad Debts. During September, Daisy made: Sales on account, $580,000. Ignore Cost of Goods Sold. Collections on account, $613,000. Write-offs of uncollectible receivables, $5,500. Read the requirements. Requirement 1. 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). Begin by journalizing all September entries using the allowance method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Sales on account, $580,000. Ignore Cost of Goods Sold. i X Requirements Date Accounts and Explanation Debit Credit Sep. 30 1. 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). 2. Using the same facts, assume that Daisy 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 Daisy report on its September income statement under each of the two methods? Which amount better matches expense with revenue? Give your reason. 4. What amount of net accounts receivable would Daisy report on its September 30, 2018, balance sheet under each of the two methods? Which amount is more realistic? Give your reason. The comparative financial statements of Northend Cosmetic Supply for 2018, 2017, and 2016 include the data shown here: (Click the icon to view the comparative financial data.) Read the requirements. Requirement 1a. Compute the acid-test ratio for 2018 and 2017. (Round to two decimals.) (Abbreviations used: Cash Cash including cash equivalents; ST invest. = short-term investments. Round the acid test ratios to two decimals, Xxx.) = Acid-test ratio 2018 2017 Requirements i Data Table 2018 2017 2016 Balance sheet-partial 1. Compute these ratios for 2018 and 2017: a. Acid-test ratio (Round to two decimals.) b. Accounts receivable tumover (Round to two decimals.) c. Days' sales in receivables (Round to the nearest whole day.) 2. Considering each ratio individually, which ratios improved from 2017 to 2018 and which ratios deteriorated? Is the trend favorable or unfavorable for the company? Current Assets Cash $ 50,000 $ 60,000 85,000 S 155,000 270,000 125,000 230,000 175,000 255,000 310,000 10,000 Print Done 360,000 55,000 290,000 25,000 Short-term Investments Accounts Receivable, Net Merchandise Inventory Prepaid Expenses Total Current Assets Total Current Liabilities Income statement-partial Net Sales (all on account) 925,000 800,000 650,000 730,000 650,000 535,000 5,850,000 5,190,000 4,200,000 Choose from any list or enter any number in the input fields and then click Check Answe Print Done