Sanders Inc. is a small brick manufacturer that uses the direct write-off method to account for uncollectible
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Sanders Inc. is a small brick manufacturer that uses the direct write-off method to account for uncollectible accounts. At the end of 2024, its balance for Accounts Receivable is $35,000. The company estimates that of this amount, $4,000 is not likely to be collected in 2025. In 2025, the actual amount of bad debts is $3,000. Record, if necessary, an adjusting entry for estimated uncollectible accounts at the end of 2024 and the actual bad debts in 2025.
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