Delores Cooper operates Cooper Garden Designs. Most of her customers pay cash so she uses the direct write$-$off method to account for uncollectible accounts receivable. On May $3,2020,$ she determined that the $$2,900$ account for Wilma Benz was uncollectible. During $2020,$ she had total credit sales of $$295,000.$ The December $31,2020,$ balance in accounts receivable was $$48,000.$

Required:

Prepare journal entry to record the May $3$ write$-$off using the direct write$-$off method.

Analysis Component:

Delores wants to compare the effect of using the allowance method versus the direct write$-$off method for recording uncollectible accounts. If uncollectible accounts were estimated at $($a$)2\%$ of credit sales or $($b$)4\%$ of outstanding accounts receivable, prepare a comparison of the effects on profit of using the allowance methods versus the direct write$-$off method.