Read the reguirements. tequirement 1. Journalize Fall Wine Tour's Bad Debts Expense using the percent-of-sales method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Dec. 31 tequirement 2. Show how to report accounts receivable on the balance sheet at December 31, 2024. Balance Sheet (Partial): Current Assets:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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During its first year of operations, Fall Wine Tour earned net credit sales of $311,000. Industry experience suggests that bad debts will amount to 3% of net credit sales. At December 31, 2024, accounts receivable total $44,000. The company uses the allowance method to account for uncollectibles.
Read the requirements.
Requirement 1. Journalize Fall Wine Tour's Bad Debts Expense using the percent-of-sales method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Date
Accounts and Explanation
Debit
Credit
Dec.
31
Requirement 2. Show how to report accounts receivable on the balance sheet at December 31, 2024.
Balance Sheet (Partial):
Current Assets:
Transcribed Image Text:During its first year of operations, Fall Wine Tour earned net credit sales of $311,000. Industry experience suggests that bad debts will amount to 3% of net credit sales. At December 31, 2024, accounts receivable total $44,000. The company uses the allowance method to account for uncollectibles. Read the requirements. Requirement 1. Journalize Fall Wine Tour's Bad Debts Expense using the percent-of-sales method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Dec. 31 Requirement 2. Show how to report accounts receivable on the balance sheet at December 31, 2024. Balance Sheet (Partial): Current Assets:
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