At the beginning of 2024, Best Heating & Air (BHA) has a balance of $24,800 in...

  

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At the beginning of 2024, Best Heating & Air (BHA) has a balance of $24,800 in accounts receivable. Because owned company, the company has used only the direct write-off method to account for uncollectible accounts 2024, BHA wishes to obtain a loan at the local bank, which requires the preparation of proper financial statem BHA now will need to use the allowance method. The following transactions occur during 2024 and 2025. 1. During 2024, install air conditioning systems on account, $178,000. 2. During 2024, collect $173.000 from customers on account. 3. At the end of 2024, estimate that uncollectible accounts total 20% of ending accounts receivable. 4. In 2025, customers' accounts totaling $4,200 are written off as uncollectible. Required: 1. Record each transaction using the allowance method. 2. Record each transaction using the direct write-off methad. 3. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off adjusting entries in 2025. Complete this question by entering your answers in the tabs below. Required 1 Bad Duin Expense Required 2 Required 3 Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off method, p any adjusting entries in 2025. (Leave no coils blank.) 2024: 2005 Answer is not complete. Allowance Mathod Direct Write-off Method 1 During 2024, install air conditioning systems on account, $178,000 2. During 2024, collect $173,000 from customers on account. 3. At the end of 2024, estimate that uncollectible accounts total 20% of ending accounts receivable. 4. In 2025, customers' accounts totaling $4,200 are written off as uncollectible Required: 1. Record each transaction using the allowance method. 2. Record each transaction using the direct write-off method. 3. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off method, adjusting entries in 2025. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Record each transaction using the direct write-off method. (If no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field.) No Transaction General Journal < Required 1 Dobit Required 3 Credit BHA now will need to use the allowance method. The following transactions occur during 2024 and 2025. 1. During 2024, install air conditioning systems on account, $178,000 2. During 2024, collect $173.000 from customers on account. 3. At the end of 2024, estimate that uncollectible accounts total 20% of onding accounts receivable. 4. In 2025, customers' accounts totaling $4,200 are written off as unicolectible. Required: 1. Record each transaction using the allowance method. 2. Record each transaction using the direct write-off method. 3. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off methad, prior to e adjusting entries in 2025. Answer is not complete. Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 Record each traction using the allowance method. (If no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field.) No Transaction Accourcivable Service Revenue Cash Aco Receivable General Journal Bad Debt Expense Allowance for Uneekeble Accents Required 2 > Debit 178.000 173.000 < Prev 9 of 9 Credit 178,000 173.000 Next > At the beginning of 2024, Best Heating & Air (BHA) has a balance of $24,800 in accounts receivable. Because owned company, the company has used only the direct write-off method to account for uncollectible accounts 2024, BHA wishes to obtain a loan at the local bank, which requires the preparation of proper financial statem BHA now will need to use the allowance method. The following transactions occur during 2024 and 2025. 1. During 2024, install air conditioning systems on account, $178,000. 2. During 2024, collect $173.000 from customers on account. 3. At the end of 2024, estimate that uncollectible accounts total 20% of ending accounts receivable. 4. In 2025, customers' accounts totaling $4,200 are written off as uncollectible. Required: 1. Record each transaction using the allowance method. 2. Record each transaction using the direct write-off methad. 3. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off adjusting entries in 2025. Complete this question by entering your answers in the tabs below. Required 1 Bad Duin Expense Required 2 Required 3 Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off method, p any adjusting entries in 2025. (Leave no coils blank.) 2024: 2005 Answer is not complete. Allowance Mathod Direct Write-off Method 1 During 2024, install air conditioning systems on account, $178,000 2. During 2024, collect $173,000 from customers on account. 3. At the end of 2024, estimate that uncollectible accounts total 20% of ending accounts receivable. 4. In 2025, customers' accounts totaling $4,200 are written off as uncollectible Required: 1. Record each transaction using the allowance method. 2. Record each transaction using the direct write-off method. 3. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off method, adjusting entries in 2025. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Record each transaction using the direct write-off method. (If no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field.) No Transaction General Journal < Required 1 Dobit Required 3 Credit BHA now will need to use the allowance method. The following transactions occur during 2024 and 2025. 1. During 2024, install air conditioning systems on account, $178,000 2. During 2024, collect $173.000 from customers on account. 3. At the end of 2024, estimate that uncollectible accounts total 20% of onding accounts receivable. 4. In 2025, customers' accounts totaling $4,200 are written off as unicolectible. Required: 1. Record each transaction using the allowance method. 2. Record each transaction using the direct write-off method. 3. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off methad, prior to e adjusting entries in 2025. Answer is not complete. Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 Record each traction using the allowance method. (If no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field.) No Transaction Accourcivable Service Revenue Cash Aco Receivable General Journal Bad Debt Expense Allowance for Uneekeble Accents Required 2 > Debit 178.000 173.000 < Prev 9 of 9 Credit 178,000 173.000 Next >

Answer rating: 100% (QA)

Bad Debt The bad debt expense is treated differently under different methods as direct write off and ... View the full answer