E8-17 (Supplement 8A) Recording Write-Offs and Reporting Accounts Receivable Using the Direct Write-Off Method [LO 8-S1 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 2015, its first year of operations, Trevorson Electronics sold $32,000 of services on account. The company collected $27,000 of these receivables during the year, and on believed that the remaining $5,000 was fully collectible. In 2016, Jon discovered that none of the $5,000 would be collected, so he wrote off the entire amount. To make matters worse, Jon sold only $6,500 of services during the year