No 22 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. Debit 411 STEVENSON COLLEGE 2689 Industrial Boulevard Chicago, IL 60614 Date Description Oct. Balance Forward Oct. 24 Invoice #723 Nov. 7. Return for Credit #CM-41 Nov. 7 Payment #723 CREDIT LIMIT: $75,000 Credit Balance 290000 60 5.90 00 230140037582 00 346 8200 290000 5769600