On august 31, 2018, orchard floral supply had a $ 155,000 debit balance in accounts receivable and a $ 6,200 credit balance in allowance for bad debts. during september, orchard made:
sales on account, $ 590,000. ignore cost of goods sold.
collections on account, $ 627,000.
write-offs of uncollectible receivables, $ 3,000.
1. journalize all september entries using the allowance method. bad debts expense was estimated at 3% of credit sales.
2. using the same facts, assume the orchard used the direct write-off method to account for uncollectible receivables. journalize all september entries using the direct write-off method. post accounts receivable and bad debts expense, and show their balance at september 30,2018.