OK International wrote off the following accounts receivable as uncollectible for the year ending December 31, 2010:
Customer Amount
Eva Fry $ 6,500
Lance Landau 11,200
Marcie Moffet 3,800
Jose Reis 3,500
Total $25,000
The company prepared the following aging schedule for its accounts receivable on December 31, 2010:
.PNG)
a. Journalize the write-offs for 2010 under the direct write-off method.
b. Journalize the write-offs and the year-end adjusting entry for 2010 under the allowance method, assuming that the allowance account had a beginning balance of $22,500 on January 1, 2010, and the company uses the analysis of receivablesmethod.