Entries for The operating expense incurred because of the failure to collect receivables.Bad Debt Expense Under the The method of accounting for uncollectible accounts that recognizes the expense only when accounts are judged to be worthless.Direct Write-Off and The method of accounting for uncollectible accounts that provides an expense for uncollectible receivables in advance of their write-off.Allowance MethodsSeaforth International wrote off the following A claim against the customer created by selling merchandise or services on credit.accounts receivable as uncollectible for the year ending December 31:

CustomerAmount Kim Abel$21,550Lee Drake33,925Jenny Green27,565Mike Lamb19,460Total$102,500The company prepared the following aging schedule for its accounts receivable on December 31:

Aging Class (Number

of Days Past Due)Receivables Balance

on December 31Estimated Percent of

Uncollectible Accounts0-30 days$715,0001%31-60 days310,000261-90 days102,0001591-120 days76,00030More than 120 days97,00060Total receivables$1,300,000

a.Journalize the write-offs for under the direct write-off method. If an amount box does not require an entry, leave it blank.

b.Journalize the write-offs and the year-end adjusting entry under the allowance method, assuming that the allowance account had a beginning credit balance of $95,000 on January 1 and the company uses the analysis of receivables method. For a compound transaction, if an amount box does not require an entry, leave it blank.

Write-off

Adjustment