The following data were associated with the accounts receivable and uncollectible accounts of Hilton, Inc., during 2003:

a. The opening credit balance in Allowance for Bad Debts was $900,000 at January 1, 2003.

b. During 2003, the company realized that specific accounts receivable totaling $920,000 had gone bad and had been written off. An account receivable of $50,000 was collected during 2003. This account had previously been written off as a bad debt in 2002.

d. The company decided that Allowance for Bad Debts would be $920,000 at the end of 2003. 9 1. Prepare journal entries to show how these events would be recognized in the accounting system using:

a. The direct write-off method.

b. The allowance method. 2. Discuss the advantages and disadvantages of each method with respect to the matching principle.