The Empire District Electric Company serves customers in the region where the states of Kansas, Missouri, Arkansas, and Oklahoma come together. Empire District uses the allowance method for recognizing uncollectible accounts. The company’s January 1, 2012, balance sheet showed accounts receivable of $42,296,000, which was shown net of uncollectible accounts of $1,138,000.

1. Suppose Empire District wrote off a specific uncollectible account for $30,000 on January 2, 2012. Assume this was the only transaction affecting the accounts receivable or allowance accounts on that day. Give the journal entry to record this write-off. What would the balance sheet show for accounts receivable at the end of the day on January 2.

2. Suppose Empire District used the specific write-off method instead of the allowance method for recognizing uncollectible accounts. Give the journal entry to record this write-off. Compute the accounts receivable balance that would be shown on the January 2, 2012, balance sheet.