information in the Employee Earnings Subsidiary Received merchandise from Velocity Sporting Goods as listed on purchase order No. 328. All merchandise listed on the purchase order was delivered in good condition and in the quantities ordered, except that only 76 basketball pole pads (Item No. BB-019) were received. The goods were placed immediately in the inventory warehouse. Freight carrier: Freight bill: Interstate Motor Freight No. 26425 (Doc. No. 19), received with shipment . Remember to follow the flowchart on page 22. You can't record a purchase yet because the invoice hasn't been received. Received check No. 28564 (Doc. No. 8) from Branch College for payment in full for charge invoice No. 730, and deposited the check. Received legal notification from Benson, Rosenbrook, and Martinson, P.C., attorneys at law, that Stevenson College had filed bankruptcy and will be unable to pay any of its outstanding debts to its suppliers. Write off the account as a bad debt. Remember that Waren Sports Supply uses the "Allowance" method rather than Direct write-off for accounting for bad debts. information in the Employee Earnings Subsidiary Received merchandise from Velocity Sporting Goods as listed on purchase order No. 328. All merchandise listed on the purchase order was delivered in good condition and in the quantities ordered, except that only 76 basketball pole pads (Item No. BB-019) were received. The goods were placed immediately in the inventory warehouse. Freight carrier: Freight bill: Interstate Motor Freight No. 26425 (Doc. No. 19), received with shipment . Remember to follow the flowchart on page 22. You can't record a purchase yet because the invoice hasn't been received. Received check No. 28564 (Doc. No. 8) from Branch College for payment in full for charge invoice No. 730, and deposited the check. Received legal notification from Benson, Rosenbrook, and Martinson, P.C., attorneys at law, that Stevenson College had filed bankruptcy and will be unable to pay any of its outstanding debts to its suppliers. Write off the account as a bad debt. Remember that Waren Sports Supply uses the "Allowance" method rather than Direct write-off for accounting for bad debts