Trevorson Electronics is a small company privately owned by Jon Trevorson, an electrician who installs wiring in new homes. Because the companys financial statements are prepared only for tax purposes, Jon uses the direct write-off method. During 2021, its first year of operations, Trevorson Electronics sold $30,400 of services on account. The company collected $26,200 of these receivables during the year, and Jon believed that the remaining $4,200 was fully collectible. In 2022, Jon discovered that none of the $4,200 would be collected, so he wrote off the entire amount. To make matters worse, Jon sold only $5,300 of services during the year.

Required:

1. Prepare journal entries to record the transactions in 2021 and 2022.

2-a. Using only the information provided (ignore other operating expenses), prepare comparative income statements for 2021 and 2022.

2-b. Was 2021 really as profitable as indicated by its income statement?

2-c. Was 2022 quite as bad as indicated by its income statement