Brady is hired in 2015 to be the accountant for Anderson Manufacturing, a private company At the end of 2015, the balance of Accounts Receivable is $29,000 In the past, Anderson has used only the direct write off method to account for bad debts Based on a detailed analysis of amounts owed, Brady be...

If Brady uses the direct writeoff method then no adjustment is record ...

Brady is hired in 2015 to be the accountant for Anderson Manufacturing, a private company. At the

Question:

Brady is hired in 2015 to be the accountant for Anderson Manufacturing, a private company. At the end of 2015, the balance of is $29,000.
In the past, Anderson has used only the direct write-off method to account for bad debts. Based on a detailed analysis of amounts owed, Brady believes the best estimate of future bad debts is $9,000. If Anderson continues to use the direct write-off method to account for uncollectible accounts, what adjustment, if any, would Brady record at the end of 2015? What adjustment, if any, would Brady record if Anderson instead uses the allowance method to account for uncollectible accounts?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...