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resulted in the following aging schedule:

$($Click the icon to view the aging schedule.$)$

Requirements

The company wants to use the allowance method to estimate bad debts. Determine the

estimated bad debts expense under the following methods at June $30,2025.$ Assume a

zero beginning balance for Allowance for Bad Debts. Round to the nearest dollar.

a$.$ Percent$-$of$-$sales method, assuming $6\%$ of credit sales will not be collected.

b$.$ Percent$-$of$-$receivables method, assuming $23\%$ of receivables will not be collected.

c$.$ Aging$-$of$-$receivables method, assuming $15\%$ of invoices $1-30$ days will not

be collected, $25\%$ of invoices $31-60$ days, $35\%$ of invoices $61-90$ days, and $60\%$ of

invoices over $90$ days.

Journalize the entry at June $30,2025,$ to adjust for bad debts expense using

the percent$-$of$-$sales method.

Journalize the entry at June $30,2025,$ to record the write$-$off of the Dia Daycare invoice.

At June $30,2025,$ T$-$accounts for Accounts Receivable and Allowance for Bad Debts

before Requirements $2$ and $3$ have been opened for you. Post entries from Requirements

$2$ and $3$ to those accounts. Assume a zero beginning balance for Allowance for Bad

Debts.

Show how Wonder Wilderness Company will report net accounts receivable on the

balance sheet on June $30,2025.$

Data table

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