At the beginning of 2 0 2 4 , Best Heating Air ( BHA ) has a balance of $ 2 6 , 0 0 0 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 2 0 2 4 , 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 2 0 2 4 and 2 0 2 5 During 2 0 2 4 , install air conditioning systems on account, $ 1 9 0 , 0 0 0 During 2 0 2 4 , collect $ 1 8 5 , 0 0 0 from customers on account At the end of 2 0 2 4 , estimate that uncollectible accounts total 1 5 of ending accounts receivable In 2 0 2 5 , customers' accounts totaling $ 3 , 0 0 0 are written off as uncollectible Required Record each transaction using the allowance method Record each transaction using the direct write off method Calculate bad debt expense for 2 0 2 4 and 2 0 2 5 under the allowance method and under the direct write off method, prior to any adjusting entries in 2 0 2 5 Complete this question by entering your answers in the tabs below Required 3 Calculate bad debt expense for 2 0 2 4 and 2 0 2 5 under the allowance method and under the direct write off method, prior to any adjusting entries in 2 0 2 5 ( Leave no cells blank )

Question

At the beginning of 2 0 2 4 , Best Heating   Air ( BHA ) has a balance of $ 2 6 , 0 0 0 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 2 0 2 4 , 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 2 0 2 4 and 2 0 2 5   During 2 0 2 4 , install air conditioning systems on account, $ 1 9 0 , 0 0 0   During 2 0 2 4 , collect $ 1 8 5 , 0 0 0 from customers on account  At the end of 2 0 2 4 , estimate that uncollectible accounts total 1 5   of ending accounts receivable  In 2 0 2 5 , customers' accounts totaling $ 3 , 0 0 0 are written off as uncollectible  Required  Record each transaction using the allowance method  Record each transaction using the direct write   off method  Calculate bad debt expense for 2 0 2 4 and 2 0 2 5 under the allowance method and under the direct write   off method, prior to any adjusting entries in 2 0 2 5   Complete this question by entering your answers in the tabs below  Required 3 Calculate bad debt expense for 2 0 2 4 and 2 0 2 5 under the allowance method and under the direct write   off method, prior to any adjusting entries in 2 0 2 5   ( Leave no cells blank  )

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Question

At the beginning of 2 0 2 4 , Best Heating & Air ( BHA ) has a balance of $ 2 6 , 0

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