Allowance Method versus Direct Write-Off Method On March 10, Barrett, Ind., declared a $1,100 account receivable from the Lamas Company as uncollectible and wrote off the account. On November 18, Barrett received a $500 payment on the account from Lamas. Fin a. Assume that Barrett uses the allowance method of handling credit losses. Prepare the journal entries to record the write-off and the subsequent recovery of Lamas's account. b. Assume that Barrett uses the direct write-off method of handling credit losses. Prepare the journal entries to record the write-off and the subsequent recovery of Lamas's account. c. Assume that the payment from Lamas arrives on February 5 of the following year rather than on November 18 of the current year. (1) Prepare the journal entries to record the write-off and subsequent recovery of Lamas's account under the allowance method. (2) Prepare the journal entries to record the write-off and subsequent recovery of Lamas's account under the direct write-off method