Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Kindly answer all three parts correctly. Thank You! 4 Part 1 of 3 1428 points Required information The following information applies to the questions displayed
Kindly answer all three parts correctly.
4 Part 1 of 3 1428 points Required information The following information applies to the questions displayed below! At the beginning of 2021, Brad's Heating & Air (BHA) has a balance of $25,300 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 2021, 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 2021 and 2022 1. During 2021. Install air conditioning systems on account. $183,000 2. During 2021, collect $178,000 from customers on account 3. At the end of 2021, estimate that uncollectible accounts total 20% of ending accounts receivable. 4. In 2022. customers' accounts totaling $7.300 are written off as uncollectible, Skipped eBook Hint References Required: 1. 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.) View transaction list Journal entry worksheet ME 5 Part 2 of 1428 point Required information The following information applies to the questions displayed below At the beginning of 2021. Brad's Heating & Air (BH) has a balance of $25 300 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 2021, 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 2021 and 2022 1. During 2021. Install air conditioning systems on account. $183000 2. During 2021, collect $178,000 from customers on account. 3. At the end of 2021, estimate that uncollectible accounts total 20% of ending accounts receivable 4. In 2022, customers' accounts to sing $7.300 are written off as uncollectible Sipped BOOM References 2. Record each transaction using the direct write off method. Of no entry is required for a particular transaction event, select "No Journal Entry Required" in the first account field) View transaction Journal entry worksheet > 6 Part 3 of 3 14.28 points Required information The following information applies to the questions displayed below) At the beginning of 2021. Brad's Heating & Air (BHA) has a balance of $25.300 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 2021, 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 2021 and 2022 1. During 2021. Install alt conditioning systems on account, $183,000, 2. During 2021 collect $178.000 from customers on account 3. At the end of 2021, estimate that uncollectible accounts total 20% of ending accounts receivable. 4. In 2022, customers' accounts totaling $7.300 are written off as uncollectible Skipped eBook Hint References 3. Calculate bad debt expense for 2021 and 2022 under the allowance method and under the direct write-off method, prior to any adjusting entries in 2022 (Leave no cells blank.) Bad Debt Expense Allowance Method Direct Write-off Method 2021 2022 Thank You!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started