At the beginning of 2018, Brad’s Heating & Air (BHA) has a balance of $26,000 in accounts receivable. Because BHA is a privately owned company, the company has used only the direct write-off method to account for uncollectible accounts. However, at the end of 2018, BHA wishes to obtain a loan at the local bank, which requires the preparation of proper financial statements. This means that BHA now will need to use the allowance method. The following transactions occur during 2018 and 2019. a. During 2018, install air conditioning systems on account, $190,000.

b. During 2018, collect $185,000 from customers on account.

c. At the end of 2018, estimate that uncollectible accounts total 15% of ending accounts receivable.

d. In 2019, customers’ accounts totaling $8,000 are written off as uncollectible.

Required:

1. Record each transaction using the allowance method.

2. Record each transaction using the direct write-off method.

3. Calculate the difference in net income (before taxes) in 2018 and 2019 between the two methods.

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

d. automatic stabilizers.

explanation:

answer; windows embedded;