E$8-17($Algo$)($Supplement $8$A$)$ Recording Write$-$Offs and Reporting Accounts Receivable Using the Direct Write$-$Off Method $[$LO $8-$S$1]$

Trevorson Electronics is a small company privately owned by Jon Trevorson, an electrician who installs wiring in new homes. Because the company's financial statements are prepared only for tax purposes, Jon uses the direct write$-$off method. During $2021,$ its first year of operations, Trevorson Electronics sold $$31,000$ of services on account. The company collected $$26,500$ of these receivables during the year, and Jon believed that the remaining $$4,500$ was fully collectible. In $2022,$ Jon discovered that none of the $$4,500$ would be collected, so he wrote off the entire amount. To make matters worse, Jon sold only $$5,750$ of services during the year.

Required:

Prepare journal entries to record the transactions in $2021$ and $2022.$

$2-$a$.$ Using only the information provided $($ignore other operating expenses$),$ prepare comparative income statements for $2021$ and $2022.$

$2-$b$.$ Was $2021$ really as profitable as indicated by its income statement?

$2-$c$.$ Was $2022$ quite as bad as indicated by its income statement?

Complete this question by entering your answers in the tabs below.

Req $1$

Req$2B$

Req$2C$

Using only the information provided $($ignore other operating expenses$),$ prepare comparative income statements for $2021$ and $2022.$

$\backslash$table$[[$TREVORSON ELECTRONICS,$],[$Income Statement,,$],[$For the Years Ended December $31,,],[,2021,2022],[$Operating Expenses:,,$],[,,],[,,]]$