Prepare the adjusting entry at December 31, 2010, to record bad debts expense assuming that the aging schedule indicates that $14,334 of accounts receivable will be uncollectible.
Repeat the above assuming that instead of a credit balance there is a $2,115 debit balance in the Allowance for Doubtful Accounts.
During the next month, January 2011, a $3,817 account receivable is written off as uncollectible. Prepare the journal entry to record the write-off.
Repeat the above part assuming that Olpe uses the direct write-off method instead of the allowance method in accounting for uncollectible accounts receivable.