At the beginning of 2024, Best Heating \& Air (BHA) has a balance of $25,100 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 2024, 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 2024 and 2025. 1. During 2024 , install air conditioning systems on account, $181,000. 2 . During 2024, collect $176,000 from customers on account. 3. At the end of 2024 , estimate that uncollectible accounts total 15% of ending accounts receivable. 4. In 2025 , customers' accounts totaling $3,200 are written off as uncollectible. Required: 1. Record each transaction using the allowance method. 2. Record each transaction using the direct write-off method. 3. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off method, prior to any adjusting entries in 2025. Complete this question by entering your answers in the tabs below. 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.) Journal entry worksheet During 2024, install air conditioning systems on account, $181,000. Note: Enter debits before credits. At the beginning of 2024, Best Heating \& Air (BHA) has a balance of $25,100 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 2024, 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 2024 and 2025. 1. During 2024 , install air conditioning systems on account, $181,000. 2 . During 2024, collect $176,000 from customers on account. 3. At the end of 2024 , estimate that uncollectible accounts total 15% of ending accounts receivable. 4. In 2025 , customers' accounts totaling $3,200 are written off as uncollectible. Required: 1. Record each transaction using the allowance method. 2. Record each transaction using the direct write-off method. 3. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off method, prior to any adjusting entries in 2025. Complete this question by entering your answers in the tabs below. 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.) Journal entry worksheet During 2024, collect $176,000 from customers on account. Note: Enter debits before credits. At the beginning of 2024, Best Heating \& Air (BHA) has a balance of $25,100 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 2024, 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 2024 and 2025. 1. During 2024 , install air conditioning systems on account, $181,000. 2 . During 2024, collect $176,000 from customers on account. 3. At the end of 2024 , estimate that uncollectible accounts total 15% of ending accounts receivable. 4. In 2025 , customers' accounts totaling $3,200 are written off as uncollectible. Required: 1. Record each transaction using the allowance method. 2. Record each transaction using the direct write-off method. 3. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off method, prior to any adjusting entries in 2025. Complete this question by entering your answers in the tabs below. 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.) Journal entry worksheet 15% of ending accounts receivable. Note: Enter debits before credits. At the beginning of 2024, Best Heating \& Air (BHA) has a balance of $25,100 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 2024, 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 2024 and 2025. 1. During 2024 , install air conditioning systems on account, $181,000. 2 . During 2024, collect $176,000 from customers on account. 3. At the end of 2024 , estimate that uncollectible accounts total 15% of ending accounts receivable. 4. In 2025 , customers' accounts totaling $3,200 are written off as uncollectible. Required: 1. Record each transaction using the allowance method. 2. Record each transaction using the direct write-off method. 3. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off method, prior to any adjusting entries in 2025. Complete this question by entering your answers in the tabs below. 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.) Journal entry worksheet In 2025, customers' accounts totaling \$3,200 are written off as uncollectible. Note: Enter debits before credits. At the beginning of 2024 , Best Heating \& Air (BHA) has a balance of $25,100 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 2024, 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 2024 and 2025. 1. During 2024 , install air conditioning systems on account, $181,000. 2 . During 2024 , collect $176,000 from customers on account. 3. At the end of 2024 , estimate that uncollectible accounts total 15% of ending accounts receivable. 4. In 2025 , customers' accounts totaling $3,200 are written off as uncollectible. Required: 1. Record each transaction using the allowance method. 2. Record each transaction using the direct write-off method. 3. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off method, prior to any adjusting entries in 2025. Complete this question by entering your answers in the tabs below. Record each transaction using the direct write-off method. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet During 2024, install air conditioning systems on account, $181,000. Note: Enter debits before credits. At the beginning of 2024 , Best Heating \& Air (BHA) has a balance of $25,100 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 2024, 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 2024 and 2025. 1. During 2024 , install air conditioning systems on account, $181,000. 2 . During 2024 , collect $176,000 from customers on account. 3. At the end of 2024 , estimate that uncollectible accounts total 15% of ending accounts receivable. 4. In 2025 , customers' accounts totaling $3,200 are written off as uncollectible. Required: 1. Record each transaction using the allowance method. 2. Record each transaction using the direct write-off method. 3. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off method, prior to any adjusting entries in 2025. Complete this question by entering your answers in the tabs below. Record each transaction using the direct write-off method. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) JournalentryworksheetDuring2024,collect$176,000fromcustomersonaccount. Note: Enter debits before credits. At the beginning of 2024 , Best Heating \& Air (BHA) has a balance of $25,100 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 2024, 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 2024 and 2025. 1. During 2024 , install air conditioning systems on account, $181,000. 2 . During 2024 , collect $176,000 from customers on account. 3. At the end of 2024 , estimate that uncollectible accounts total 15% of ending accounts receivable. 4. In 2025 , customers' accounts totaling $3,200 are written off as uncollectible. Required: 1. Record each transaction using the allowance method. 2. Record each transaction using the direct write-off method. 3. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off method, prior to any adjusting entries in 2025. Complete this question by entering your answers in the tabs below. Record each transaction using the direct write-off method. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet At the end of 2024, estimate that uncollectible accounts total 15% of ending accounts receivable. Note: Enter debits before credits. At the beginning of 2024 , Best Heating \& Air (BHA) has a balance of $25,100 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 2024, 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 2024 and 2025. 1. During 2024 , install air conditioning systems on account, $181,000. 2. During 2024 , collect $176,000 from customers on account. 3. At the end of 2024 , estimate that uncollectible accounts total 15% of ending accounts receivable. 4. In 2025, customers' accounts totaling $3,200 are written off as uncollectible. Required: 1. Record each transaction using the allowance method. 2. Record each transaction using the direct write-off method. 3. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off method, prior to any adjusting entries in 2025 . Complete this question by entering your answers in the tabs below. Record each transaction using the direct write-off method. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet In 2025, customers' accounts totaling $3,200 are written off as uncollectible. Note: Enter debits before credits. At the beginning of 2024 , Best Heating \& Air (BHA) has a balance of $25,100 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 2024, 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 2024 and 2025. 1. During 2024 , install air conditioning systems on account, $181,000. 2. During 2024 , collect $176,000 from customers on account. 3. At the end of 2024 , estimate that uncollectible accounts total 15% of ending accounts receivable. 4. In 2025, customers' accounts totaling $3,200 are written off as uncollectible. Required: 1. Record each transaction using the allowance method. 2. Record each transaction using the direct write-off method. 3. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off method, prior to any adjusting entries in 2025. Complete this question by entering your answers in the tabs below. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off method, prior to any adjusting entries in 2025 . (Leave no cells blank.) At the end of Year 5, your consulting firm has been hired by a local service firm to help forecast future uncollectible accounts. You ask receivable at the beginning of the year. With these historical percentages, you estimate a trend line (dashed line) to predict the percentage of uncollectible accounts for Year 6 , the upcoming year. Graphs were provided to management from your analysis of each of the three age categories, as well as balances of accounts receivable by age category at the end of Year 5 as follows: Percentage of Uncollectible Accounts: Click here to open the graph(s) in a new tab. Required: 1. Which age categories predicts the lowest percentage of uncollectible accounts for Year 6 ? 2. Which age categories predicts the highest percentage of uncollectible accounts for Year 6 ? 3. What is the dollar amount of accounts receivable that are 1-30 days past due at the end of year 5 (bottom graph)? 4. Calculate the total amount of estimated uncollectible accounts for Year 6 (Hint: Use all three age categories)? 5. Assume the balance of Allowance for Uncollectible Accounts is $4,850 (credit) at the end of Year 5 (before any adjustment). Prepare the adjusting entry at the end of Year 5. 6. Determine the amount of net accounts receivable the company would report at the end of Year 5. Complete this question by entering your answers in the tabs below. Which age categories predicts the lowest percentage of uncollectible accounts for Year 6 ? At the end of Year 5, your consulting firm has been hired by a local service firm to help forecast future uncollectible accounts. You ask the service firm to provide several years of data on the percentage of uncollectible accounts based on the age categories accounts receivable at the beginning of the year. With these historical percentages, you estimate a trend line (dashed line) to predict the percentage of uncollectible accounts for Year 6 , the upcoming year. Graphs were provided to management from your analysis of each of the three age categories, as well as balances of accounts receivable by age category at the end of 5 as follows: Percentage of Uncollectible Accounts: Click here to open the graph(s) in a new tab. Required: 1. Which age categories predicts the lowest percentage of uncollectible accounts for Year 6 ? 2. Which age categories predicts the highest percentage of uncollectible accounts for Year 6 ? 3. What is the dollar amount of accounts receivable that are 1-30 days past due at the end of year 5 (bottom graph)? 4. Calculate the total amount of estimated uncollectible accounts for Year 6 (Hint: Use all three age categories)? 5. Assume the balance of Allowance for Uncollectible Accounts is $4,850 (credit) at the end of Year 5 (before any adjustment). Prepare the adjusting entry at the end of Year 5. 6. Determine the amount of net accounts receivable the company would report at the end of Year 5. Complete this question by entering your answers in the tabs below. Which age categories predicts the highest percentage of uncollectible accounts for Year 6 ? At the end of Year 5, your consulting firm has been hired by a local service firm to help forecast future uncollectible accounts. You ask receivable at the beginning of the year. With these historical percentages, you estimate a trend line (dashed line) to predict the percentage of uncollectible accounts for Year 6 , the upcoming year. Graphs were provided to management from your analysis of each of the three age categories, as well as balances of accounts receivable by age category at the end of 5 as follows: Percentage of Uncollectible Accounts: Click here to open the graph(s) in a new tab. Required: 1. Which age categories predicts the lowest percentage of uncollectible accounts for Year 6 ? 2. Which age categories predicts the highest percentage of uncollectible accounts for Year 6 ? 3. What is the dollar amount of accounts receivable that are 1-30 days past due at the end of year 5 (bottom graph)? 4. Calculate the total amount of estimated uncollectible accounts for Year 6 (Hint: Use all three age categories)? 5. Assume the balance of Allowance for Uncollectible Accounts is $4,850 (credit) at the end of Year 5 (before any adjustment). Prepare the adjusting entry at the end of 5. 6. Determine the amount of net accounts receivable the company would report at the end of Year 5. Complete this question by entering your answers in the tabs below. What is the dollar amount of accounts receivable that are 1-30 days past due at the end of year 5 (bottom graph)? At the end of Year 5, your consulting firm has been hired by a local service firm to help forecast future uncollectible accounts. You ask receivable at the beginning of the year. With these historical percentages, you estimate a trend line (dashed line) to predict the percentage of uncollectible accounts for Year 6 , the upcoming year. Graphs were provided to management from your analysis of each of the three age categories, as well as balances of accounts receivable by age category at the end of 5 as follows: Percentage of Uncollectible Accounts: Click here to open the graph(s) in a new tab. Required: 1. Which age categories predicts the lowest percentage of uncollectible accounts for Year 6 ? 2. Which age categories predicts the highest percentage of uncollectible accounts for Year 6 ? 3. What is the dollar amount of accounts receivable that are 1-30 days past due at the end of year 5 (bottom graph)? 4. Calculate the total amount of estimated uncollectible accounts for Year 6 (Hint: Use all three age categories)? 5. Assume the balance of Allowance for Uncollectible Accounts is $4,850 (credit) at the end of Year 5 (before any adjustment). Prepare the adjusting entry at the end of 5 . 6. Determine the amount of net accounts receivable the company would report at the end of Year 5. Complete this question by entering your answers in the tabs below. Calculate the total amount of estimated uncollectible accounts for Year 6 (Hint: Use all three age categories)? Click here to open the graph(s) in a new tab. Required: 1. Which age categories predicts the lowest percentage of uncollectible accounts for Year 6 ? 2. Which age categories predicts the highest percentage of uncollectible accounts for Year 6 ? 3. What is the dollar amount of accounts receivable that are 130 days past due at the end of year 5 (bottom graph) 4. Calculate the total amount of estimated uncollectible accounts for Year 6 (Hint: Use all three age categories)? 5. Assume the balance of Allowance for Uncollectible Accounts is $4,850 (credit) at the end of Year 5 (before any adjustment). Prepare the adjusting entry at the end of Year 5. 6. Determine the amount of net accounts receivable the company would report at the end of Year 5. Complete this question by entering your answers in the tabs below. Assume the balance of Allowance for Uncollectible Accounts is $4,850 (credit) at the end of Year 5 (before any adjustment). Prepare the adjusting entry at the end of Year 5 . (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Percentage of Uncollectible Accounts: Click here to open the graph(s) in a new tab. Required: 1. Which age categories predicts the lowest percentage of uncollectible accounts for Year 6 ? 2. Which age categories predicts the highest percentage of uncollectible accounts for Year 6 ? 3. What is the dollar amount of accounts receivable that are 1-30 days past due at the end of year 5 (bottom graph)? 4. Calculate the total amount of estimated uncollectible accounts for Year 6 (Hint: Use all three age categories)? 5. Assume the balance of Allowance for Uncollectible Accounts is $4,850 (credit) at the end of Year 5 (before any adjustment). Prepare the adjusting entry at the end of Year 5. 6. Determine the amount of net accounts receivable the company would report at the end of Year 5. Complete this question by entering your answers in the tabs below. Determine the amount of net accounts receivable the company would report at the end of Year 5. At the beginning of 2024, Best Heating \& Air (BHA) has a balance of $25,100 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 2024, 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 2024 and 2025. 1. During 2024 , install air conditioning systems on account, $181,000. 2 . During 2024, collect $176,000 from customers on account. 3. At the end of 2024 , estimate that uncollectible accounts total 15% of ending accounts receivable. 4. In 2025 , customers' accounts totaling $3,200 are written off as uncollectible. Required: 1. Record each transaction using the allowance method. 2. Record each transaction using the direct write-off method. 3. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off method, prior to any adjusting entries in 2025. Complete this question by entering your answers in the tabs below. 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.) Journal entry worksheet During 2024, install air conditioning systems on account, $181,000. Note: Enter debits before credits. At the beginning of 2024, Best Heating \& Air (BHA) has a balance of $25,100 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 2024, 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 2024 and 2025. 1. During 2024 , install air conditioning systems on account, $181,000. 2 . During 2024, collect $176,000 from customers on account. 3. At the end of 2024 , estimate that uncollectible accounts total 15% of ending accounts receivable. 4. In 2025 , customers' accounts totaling $3,200 are written off as uncollectible. Required: 1. Record each transaction using the allowance method. 2. Record each transaction using the direct write-off method. 3. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off method, prior to any adjusting entries in 2025. Complete this question by entering your answers in the tabs below. 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.) Journal entry worksheet During 2024, collect $176,000 from customers on account. Note: Enter debits before credits. At the beginning of 2024, Best Heating \& Air (BHA) has a balance of $25,100 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 2024, 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 2024 and 2025. 1. During 2024 , install air conditioning systems on account, $181,000. 2 . During 2024, collect $176,000 from customers on account. 3. At the end of 2024 , estimate that uncollectible accounts total 15% of ending accounts receivable. 4. In 2025 , customers' accounts totaling $3,200 are written off as uncollectible. Required: 1. Record each transaction using the allowance method. 2. Record each transaction using the direct write-off method. 3. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off method, prior to any adjusting entries in 2025. Complete this question by entering your answers in the tabs below. 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.) Journal entry worksheet 15% of ending accounts receivable. Note: Enter debits before credits. At the beginning of 2024, Best Heating \& Air (BHA) has a balance of $25,100 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 2024, 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 2024 and 2025. 1. During 2024 , install air conditioning systems on account, $181,000. 2 . During 2024, collect $176,000 from customers on account. 3. At the end of 2024 , estimate that uncollectible accounts total 15% of ending accounts receivable. 4. In 2025 , customers' accounts totaling $3,200 are written off as uncollectible. Required: 1. Record each transaction using the allowance method. 2. Record each transaction using the direct write-off method. 3. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off method, prior to any adjusting entries in 2025. Complete this question by entering your answers in the tabs below. 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.) Journal entry worksheet In 2025, customers' accounts totaling \$3,200 are written off as uncollectible. Note: Enter debits before credits. At the beginning of 2024 , Best Heating \& Air (BHA) has a balance of $25,100 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 2024, 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 2024 and 2025. 1. During 2024 , install air conditioning systems on account, $181,000. 2 . During 2024 , collect $176,000 from customers on account. 3. At the end of 2024 , estimate that uncollectible accounts total 15% of ending accounts receivable. 4. In 2025 , customers' accounts totaling $3,200 are written off as uncollectible. Required: 1. Record each transaction using the allowance method. 2. Record each transaction using the direct write-off method. 3. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off method, prior to any adjusting entries in 2025. Complete this question by entering your answers in the tabs below. Record each transaction using the direct write-off method. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet During 2024, install air conditioning systems on account, $181,000. Note: Enter debits before credits. At the beginning of 2024 , Best Heating \& Air (BHA) has a balance of $25,100 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 2024, 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 2024 and 2025. 1. During 2024 , install air conditioning systems on account, $181,000. 2 . During 2024 , collect $176,000 from customers on account. 3. At the end of 2024 , estimate that uncollectible accounts total 15% of ending accounts receivable. 4. In 2025 , customers' accounts totaling $3,200 are written off as uncollectible. Required: 1. Record each transaction using the allowance method. 2. Record each transaction using the direct write-off method. 3. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off method, prior to any adjusting entries in 2025. Complete this question by entering your answers in the tabs below. Record each transaction using the direct write-off method. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) JournalentryworksheetDuring2024,collect$176,000fromcustomersonaccount. Note: Enter debits before credits. At the beginning of 2024 , Best Heating \& Air (BHA) has a balance of $25,100 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 2024, 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 2024 and 2025. 1. During 2024 , install air conditioning systems on account, $181,000. 2 . During 2024 , collect $176,000 from customers on account. 3. At the end of 2024 , estimate that uncollectible accounts total 15% of ending accounts receivable. 4. In 2025 , customers' accounts totaling $3,200 are written off as uncollectible. Required: 1. Record each transaction using the allowance method. 2. Record each transaction using the direct write-off method. 3. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off method, prior to any adjusting entries in 2025. Complete this question by entering your answers in the tabs below. Record each transaction using the direct write-off method. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet At the end of 2024, estimate that uncollectible accounts total 15% of ending accounts receivable. Note: Enter debits before credits. At the beginning of 2024 , Best Heating \& Air (BHA) has a balance of $25,100 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 2024, 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 2024 and 2025. 1. During 2024 , install air conditioning systems on account, $181,000. 2. During 2024 , collect $176,000 from customers on account. 3. At the end of 2024 , estimate that uncollectible accounts total 15% of ending accounts receivable. 4. In 2025, customers' accounts totaling $3,200 are written off as uncollectible. Required: 1. Record each transaction using the allowance method. 2. Record each transaction using the direct write-off method. 3. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off method, prior to any adjusting entries in 2025 . Complete this question by entering your answers in the tabs below. Record each transaction using the direct write-off method. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet In 2025, customers' accounts totaling $3,200 are written off as uncollectible. Note: Enter debits before credits. At the beginning of 2024 , Best Heating \& Air (BHA) has a balance of $25,100 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 2024, 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 2024 and 2025. 1. During 2024 , install air conditioning systems on account, $181,000. 2. During 2024 , collect $176,000 from customers on account. 3. At the end of 2024 , estimate that uncollectible accounts total 15% of ending accounts receivable. 4. In 2025, customers' accounts totaling $3,200 are written off as uncollectible. Required: 1. Record each transaction using the allowance method. 2. Record each transaction using the direct write-off method. 3. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off method, prior to any adjusting entries in 2025. Complete this question by entering your answers in the tabs below. Calculate bad debt expense for 2024 and 2025 under the allowance method and under the direct write-off method, prior to any adjusting entries in 2025 . (Leave no cells blank.) At the end of Year 5, your consulting firm has been hired by a local service firm to help forecast future uncollectible accounts. You ask receivable at the beginning of the year. With these historical percentages, you estimate a trend line (dashed line) to predict the percentage of uncollectible accounts for Year 6 , the upcoming year. Graphs were provided to management from your analysis of each of the three age categories, as well as balances of accounts receivable by age category at the end of Year 5 as follows: Percentage of Uncollectible Accounts: Click here to open the graph(s) in a new tab. Required: 1. Which age categories predicts the lowest percentage of uncollectible accounts for Year 6 ? 2. Which age categories predicts the highest percentage of uncollectible accounts for Year 6 ? 3. What is the dollar amount of accounts receivable that are 1-30 days past due at the end of year 5 (bottom graph)? 4. Calculate the total amount of estimated uncollectible accounts for Year 6 (Hint: Use all three age categories)? 5. Assume the balance of Allowance for Uncollectible Accounts is $4,850 (credit) at the end of Year 5 (before any adjustment). Prepare the adjusting entry at the end of Year 5. 6. Determine the amount of net accounts receivable the company would report at the end of Year 5. Complete this question by entering your answers in the tabs below. Which age categories predicts the lowest percentage of uncollectible accounts for Year 6 ? At the end of Year 5, your consulting firm has been hired by a local service firm to help forecast future uncollectible accounts. You ask the service firm to provide several years of data on the percentage of uncollectible accounts based on the age categories accounts receivable at the beginning of the year. With these historical percentages, you estimate a trend line (dashed line) to predict the percentage of uncollectible accounts for Year 6 , the upcoming year. Graphs were provided to management from your analysis of each of the three age categories, as well as balances of accounts receivable by age category at the end of 5 as follows: Percentage of Uncollectible Accounts: Click here to open the graph(s) in a new tab. Required: 1. Which age categories predicts the lowest percentage of uncollectible accounts for Year 6 ? 2. Which age categories predicts the highest percentage of uncollectible accounts for Year 6 ? 3. What is the dollar amount of accounts receivable that are 1-30 days past due at the end of year 5 (bottom graph)? 4. Calculate the total amount of estimated uncollectible accounts for Year 6 (Hint: Use all three age categories)? 5. Assume the balance of Allowance for Uncollectible Accounts is $4,850 (credit) at the end of Year 5 (before any adjustment). Prepare the adjusting entry at the end of Year 5. 6. Determine the amount of net accounts receivable the company would report at the end of Year 5. Complete this question by entering your answers in the tabs below. Which age categories predicts the highest percentage of uncollectible accounts for Year 6 ? At the end of Year 5, your consulting firm has been hired by a local service firm to help forecast future uncollectible accounts. You ask receivable at the beginning of the year. With these historical percentages, you estimate a trend line (dashed line) to predict the percentage of uncollectible accounts for Year 6 , the upcoming year. Graphs were provided to management from your analysis of each of the three age categories, as well as balances of accounts receivable by age category at the end of 5 as follows: Percentage of Uncollectible Accounts: Click here to open the graph(s) in a new tab. Required: 1. Which age categories predicts the lowest percentage of uncollectible accounts for Year 6 ? 2. Which age categories predicts the highest percentage of uncollectible accounts for Year 6 ? 3. What is the dollar amount of accounts receivable that are 1-30 days past due at the end of year 5 (bottom graph)? 4. Calculate the total amount of estimated uncollectible accounts for Year 6 (Hint: Use all three age categories)? 5. Assume the balance of Allowance for Uncollectible Accounts is $4,850 (credit) at the end of Year 5 (before any adjustment). Prepare the adjusting entry at the end of 5. 6. Determine the amount of net accounts receivable the company would report at the end of Year 5. Complete this question by entering your answers in the tabs below. What is the dollar amount of accounts receivable that are 1-30 days past due at the end of year 5 (bottom graph)? At the end of Year 5, your consulting firm has been hired by a local service firm to help forecast future uncollectible accounts. You ask receivable at the beginning of the year. With these historical percentages, you estimate a trend line (dashed line) to predict the percentage of uncollectible accounts for Year 6 , the upcoming year. Graphs were provided to management from your analysis of each of the three age categories, as well as balances of accounts receivable by age category at the end of 5 as follows: Percentage of Uncollectible Accounts: Click here to open the graph(s) in a new tab. Required: 1. Which age categories predicts the lowest percentage of uncollectible accounts for Year 6 ? 2. Which age categories predicts the highest percentage of uncollectible accounts for Year 6 ? 3. What is the dollar amount of accounts receivable that are 1-30 days past due at the end of year 5 (bottom graph)? 4. Calculate the total amount of estimated uncollectible accounts for Year 6 (Hint: Use all three age categories)? 5. Assume the balance of Allowance for Uncollectible Accounts is $4,850 (credit) at the end of Year 5 (before any adjustment). Prepare the adjusting entry at the end of 5 . 6. Determine the amount of net accounts receivable the company would report at the end of Year 5. Complete this question by entering your answers in the tabs below. Calculate the total amount of estimated uncollectible accounts for Year 6 (Hint: Use all three age categories)? Click here to open the graph(s) in a new tab. Required: 1. Which age categories predicts the lowest percentage of uncollectible accounts for Year 6 ? 2. Which age categories predicts the highest percentage of uncollectible accounts for Year 6 ? 3. What is the dollar amount of accounts receivable that are 130 days past due at the end of year 5 (bottom graph) 4. Calculate the total amount of estimated uncollectible accounts for Year 6 (Hint: Use all three age categories)? 5. Assume the balance of Allowance for Uncollectible Accounts is $4,850 (credit) at the end of Year 5 (before any adjustment). Prepare the adjusting entry at the end of Year 5. 6. Determine the amount of net accounts receivable the company would report at the end of Year 5. Complete this question by entering your answers in the tabs below. Assume the balance of Allowance for Uncollectible Accounts is $4,850 (credit) at the end of Year 5 (before any adjustment). Prepare the adjusting entry at the end of Year 5 . (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Percentage of Uncollectible Accounts: Click here to open the graph(s) in a new tab. Required: 1. Which age categories predicts the lowest percentage of uncollectible accounts for Year 6 ? 2. Which age categories predicts the highest percentage of uncollectible accounts for Year 6 ? 3. What is the dollar amount of accounts receivable that are 1-30 days past due at the end of year 5 (bottom graph)? 4. Calculate the total amount of estimated uncollectible accounts for Year 6 (Hint: Use all three age categories)? 5. Assume the balance of Allowance for Uncollectible Accounts is $4,850 (credit) at the end of Year 5 (before any adjustment). Prepare the adjusting entry at the end of Year 5. 6. Determine the amount of net accounts receivable the company would report at the end of Year 5. Complete this question by entering your answers in the tabs below. Determine the amount of net accounts receivable the company would report at the end of Year 5