Acme Cell Phones had a debit balance in Accounts Receivable of $100,000 on January 1, 2023. On that date, Acme sold $80,000 of merchandise to Brodie Trucking Company on account. Ignore the cost of goods sold.

On January 28, Brodie paid only $56,000 of the account receivable. After repeated attempts to collect, Acme finally wrote off its accounts receivable from Brodie on May 31.

On December 1, Acme received Brodie’s cheque for $24,000 with a note apologizing for the late payment.

Required

1. Journalize the Acme Cell Phones transactions using the allowance method.

2. Record the May 31 and December 1 journal entries as if Acme Cell Phones were using the direct write-off method.

3. What amount of net Accounts Receivable would Acme Cell Phones report on its December 31, 2023, balance sheet under the direct write-off method? Does Acme expect to collect this much of the receivable? Give your reasons.