1. At the beginning of 2021, Brads Heating & Air (BHA) has a balance of $25,500 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 2021, BHA wishes to obtain a loan at the local bank, which requires the preparation of proper financial statements. This means that BHA now will need to use the allowance method. The following transactions occur during 2021 and 2022.

1. During 2021, install air conditioning systems on account, $185,000.

2. During 2021, collect $180,000 from customers on account.

3. At the end of 2021, estimate that uncollectible accounts total 20% of ending accounts receivable.

4. In 2022, customers accounts totaling $7,500 are written off as uncollectible.

Required: Record each transaction using the allowance method. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

during 2021 install air conditioning systems on account 185,000

during 2021 collect 180,000 from customers on account

at the end of 2021, estimate that uncollectable accounts total 10% of ending accounts receivable

in 2022 customers accounts totaling 7500 are written off as uncollectable