(2) Accounting for Bad Debts The following data was associated with the accounts receivable and uncollectible accounts of Hilton, Inc. during 2003. (1) Prepare journal entries under the direct write off method to record the fact that: (2) Prepare journal entries under the allowance method to record the fact that: (If a journal entry is not needed, state no entry.) (a) The company estimates that $920,000 of bad debts will occur this year. Date entry as of 1/1/03. (b) John Smith did not pay his account of $50,000, and it was written off on 12/15/03.

(2) Accounting for Bad Debts The following data was associated with the accounts receivable and uncollectible accounts of Hilton, Inc. during 2003. (1) Prepare journal entries under the direct write off method to record the fact that: (2) Prepare joumal entries under the allowance method to record the fact that: (If a joumal entry is not needed, state no entry.) (a) The company estimates that $920,000 of bad debts will occur this year. Date entry of 1/1/03. (b) John Smith did not pay his account of $50,000, and it was written off on 12/15/03