Question: Allowance Method versus Direct Write-Off Method On March 10, Barrett, Ind., declared a $1,100 account receivable from the Lamas Company as uncollectible and wrote off

declared a $1,100 account receivable from the Lamas Company as uncollectible and

wrote off the account. On November 18, Barrett received a $500 payment

on the account from Lamas. Fin a. Assume that Barrett uses the

allowance method of handling credit losses. Prepare the journal entries to record

Allowance Method versus Direct Write-Off Method On March 10, Barrett, Ind., declared a $1,100 account receivable from the Lamas Company as uncollectible and wrote off the account. On November 18, Barrett received a $500 payment on the account from Lamas. Fin a. Assume that Barrett uses the allowance method of handling credit losses. Prepare the journal entries to record the write-off and the subsequent recovery of Lamas's account. b. Assume that Barrett uses the direct write-off method of handling credit losses. Prepare the journal entries to record the write-off and the subsequent recovery of Lamas's account. c. Assume that the payment from Lamas arrives on February 5 of the following year rather than on November 18 of the current year. (1) Prepare the journal entries to record the write-off and subsequent recovery of Lamas's account under the allowance method. (2) Prepare the journal entries to record the write-off and subsequent recovery of Lamas's account under the direct write-off method

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