2. What adjustment, if any, would Brady record if Anderson instead uses the allowance method to account for uncollectible accounts?(If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)View transaction listJournal entry worksheet1Record the adjusting entry for Allowance for Uncollectible Accounts.Note: Enter debits before credits.TransactionGeneral JournalDebitCredit1Record entryClear entryView general journal Brady is hired in 2021 to be the accountant for Anderson Manufacturing, a private company. At the end of 2021, the balance ofAccounts Receivable is $22,000. In the past, Anderson has used only the direct write-off method to account for bad debts. Based on adetailed analysis of amounts owed, Brady believes the best estimate of future bad debts is $7,600Required:1. If Anderson continues to use the direct write-off method to account for uncollectible accounts, what adjustment, if any, would Bradyrecord at the end of 2021? (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the firstaccount field.)View transaction listJournal entry worksheet1Record the adjusting entry for Allowance for Uncollectible Accounts.Note: Enter debits before credits.TransactionCreditGeneral JournalDebit1Record entryClear entryView general journal

Question
Asked Sep 26, 2019
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problem

2. What adjustment, if any, would Brady record if Anderson instead uses the allowance method to account for uncollectible accounts?
(If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
1
Record the adjusting entry for Allowance for Uncollectible Accounts.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
1
Record entry
Clear entry
View general journal
help_outline

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2. What adjustment, if any, would Brady record if Anderson instead uses the allowance method to account for uncollectible accounts? (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the adjusting entry for Allowance for Uncollectible Accounts. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal

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Brady is hired in 2021 to be the accountant for Anderson Manufacturing, a private company. At the end of 2021, the balance of
Accounts Receivable is $22,000. In the past, Anderson has used only the direct write-off method to account for bad debts. Based on a
detailed analysis of amounts owed, Brady believes the best estimate of future bad debts is $7,600
Required:
1. If Anderson continues to use the direct write-off method to account for uncollectible accounts, what adjustment, if any, would Brady
record at the end of 2021? (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first
account field.)
View transaction list
Journal entry worksheet
1
Record the adjusting entry for Allowance for Uncollectible Accounts.
Note: Enter debits before credits.
Transaction
Credit
General Journal
Debit
1
Record entry
Clear entry
View general journal
help_outline

Image Transcriptionclose

Brady is hired in 2021 to be the accountant for Anderson Manufacturing, a private company. At the end of 2021, the balance of Accounts Receivable is $22,000. In the past, Anderson has used only the direct write-off method to account for bad debts. Based on a detailed analysis of amounts owed, Brady believes the best estimate of future bad debts is $7,600 Required: 1. If Anderson continues to use the direct write-off method to account for uncollectible accounts, what adjustment, if any, would Brady record at the end of 2021? (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the adjusting entry for Allowance for Uncollectible Accounts. Note: Enter debits before credits. Transaction Credit General Journal Debit 1 Record entry Clear entry View general journal

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Expert Answer

Step 1

Definition of Direct Write-off Method:

Direct Write-off method is a method for recognizing the bad debt expenses arising from credit sales. Under this method there is no allowance account, rather than account receivable is written-off directly to expenses only when the amount is uncollectible.

Step 2

Definition of Allowance Method:

Allowance Method are refer as an uncollectible account receivable pr...

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