Brady is hired in 2018 to be the accountant for Anderson Manufacturing, a private company. At the end of 2018, the balance of Accounts Receivable is $22,000. In the past, Anderson has used only the direct write-off method to account for bad debts. Based on a detailed analysis of amounts owed, Brady believes the best estimate of future bad debts is $7,600.

1. If Anderson continues to use the direct write-off method to account for uncollectible accounts, what adjustment, if any, would Brady record at the end of 2018?

1.00 points Brady is hired in 2018 to be the accountant for Anderson Manufacturing, a private company. At the end of 2018, the balance of Accounts Receivable is $22,000. In the past, Anderson has used only the direct write-off method to account for bad debts. Based on a detailed analysis of amounts owed, Brady believes the best estimate of future bad debts is $7.600. 1. If Anderson continues to use the direct write-off method to account for uncollectible accounts, what adjustment, if any, would Brady record at the end of 2018? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is complete but not entirely correct Transaction General Journal Debit Credit 7,600X Bad debt expense Accounts receivable 7,600 2. What adjustment, if any, would Brady record if Anderson instead uses the allowance method to account for uncollectible accounts? (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) Answer is complete and correct General Journal Transaction Debit Credit 7.600 V Bad debt expense Allowance for uncollectible accounts 7,600