At the beginning of 2021, Brads Heating & Air (BHA) has a balance of $24,100 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.

Bad Debt Expense Allowance Method Direct Write-off Method 2021 2022 Bad Debt Expense Allowance Method Direct Write-off Method 2021 2022