Exercise 5-13 (Algo) Compare the allowance method and the direct write-off method (LO5-6) At the beginning of 2024, Best Heating \& Air (BHA) has a balance of $24,400 in accounts receivable. Because BHA is a privately owned company, the company has used only the direct write-off method to account for uncollectible accounts. However, at the end of 2024. BHA wishes to obtain a loan at the local bank, which requires the preparation df proper financial statements. This means that 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, $174,000. 2. During 2024, collect $169,000 from customers on account. 3. At the end of 2024 , estimate that uncollectible accounts total 15% of ending accounts receivable. 4. In 2025, customers' accounts totaling $2,400 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, prior to any adjusting entries in 2025 . Complete this question by entering your answers in the tabs below. Record each transaction using the allowance method. (If no entry is required for a particular transaction/event, select "No Journal En Required in the first account fleld.) Journal entry worksheet During 2024 , install air conditioning systems on account, $174,000. Note: Enter debits before credits. Journal entry worksheet 4 During 2024 , collect $169,000 from customers on account. Note: Enter debits before credits. Journal entry worksheet At the end of 2024 , estimate that uncollectible accounts total 15% of ending accounts receivable. Note: Enter debits before credits. Journal entry worksheet In 2025, customers' accounts totaling $2,400 are written off as uncollectible. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct writ any adjusting entries in 2025. (Leave no cells blank.)