At December 31 2015 the trial balance of Markowitz

Company
At December 31, 2015, the trial balance of Markowitz Company contained the following
amounts before adjustment.Instructions(a) Prepare the adjusting entry at December 31, 2015,
to record bad debt expense under each of the following independent assumptions.(1) An aging
schedule indicates that $13,500 of accounts receivable will be uncollectible.(2) The company
estimates that 2% of sales will be uncollectible.(b) Repeat part (a) assuming that instead of a
credit balance, there is a $1,100 debit balance in Allowance for Doubtful Accounts.(c) During
the next month, January 2016, a $3,200 account receivable is written off as uncollectible.
Prepare the journal entry to record the write-off.(d) Repeat part (c) assuming that Markowitz
Company uses the direct write-off method instead of the allowance method in accounting for
uncollectible accounts receivable.(e) What are the advantages of using the allowance method in
accounting for uncollectible accounts as compared to the direct write-offmethod?
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At December 31 2015 the trial balance of Markowitz Company
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