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:

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.

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Aging Class (Number Receivables Balance Estimated Percent of of Days Past Due) on December 31 Uncollectible Accounts 0-30 days 1% $480,000 3 3 20 30 40,000 25,000 61-90 days 91-120 days More than 120 days Total receivables 40 5,000 $650,000