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PROBLEM I4-1A Objective: To account for bad debts using the direct write- off method Mary Ann Whitehurst, owner of Whitehurst Company, uses the direct write-off method to account for bad debts. The following transactions relating to bad debts occurred during 202 : 202 Jan. 13 Sold merchandise on account to Mary Pinkham, $700. 31 Sold merchandise on account to Ralph Emerson, $1,060. Feb. 15 Received payment on account from John Markowitz, \$600. Mar. 11 Received notice that Wilson Coolidge, a customer, declared bankruptcy. Wrote off his balance of $3,750. Apr. 20 Received $180 from Mary Pinkham on account. May 31 Received notice that Mary Pinkham would be unable to pay the balance of her account from January 13. Wrote off the remaining amount due. Jun. 10 Sold merchandise on account to David Carlson, $475. Jul. 22 Received 10% of the January 31 balance from Ralph Emerson. Wrote off the remaining balance of the account. Nov. 13 After several efforts at collection, wrote off the amount due from David Carlson for the sale of June 10. Dec. 1 Maria Valdez, a customer whose account was written off in 20Xl, sent a check for the balance of her account, $1,770. 31 Closed the Bad Debts Expense account. Directions: Record each of Whitehurst's transactions for 202 in a general journal, page 1. Post to the Bad Debts Expense account (614) as you proceed