Delores Cooper operates Cooper Garden Designs. Most of her customers pay cash so she uses the direct write-off method to account for uncollectible accounts receivable. On May 3, 2023, she determined that the $3,350 account for Wilma Benz was uncollectible. During 2023, she had total credit sales of $339,000. The December 31, 2023, balance in accounts receivable was $60,000.

Required
Record the May 3 write-off using the direct write-off method.

Analysis Component:
Delores wants to compare the effect of using the allowance method versus the direct write-off method for recording uncollectible accounts. If uncollectible accounts were estimated at 

(a) 2% of credit sales or 

(b) 4% of outstanding accounts receivable, prepare a comparison of the effects on profit of using the allowance methods versus the direct write-off method.