OK International wrote off the following accounts receivable as uncollectible for the year ending December 31, 2010:
Customer Amount
Eva Fry $ 6,500
Lance Landau 11,200
Marcie Moffet 3,800
Jose Reis 3,500
Total $25,000
The company prepared the following aging schedule for its accounts receivable on December 31, 2010:
a. Journalize the write offs for 2010 under the direct write off method.
b. Journalize the write offs and the year end adjusting entry for 2010 under the allowance method, assuming that the allowance account had a beginning balance of $22,500 on January 1, 2010, and the company uses the analysis of receivablesmethod.