Complete the accounting for the following (you can use the Accounting Equation, Journal Entries or T accounts). below are independent of each other as they are different companies.
#1:
a) Strand corp sells $2001000 worth of student-consulting services, 70% on account, the remain er for cash
b) Strand collects $50,000 from customers previously sold to on account
c) Strand corp determines that its Bad Debt is immaterial and therefore uses the Direct Write-off Method. The corp writes off customer-student A, who owes Strand corp $1,575. Account for the direct write-off
#2:
Bigger corp has numerous clients they sell to on account. At 12/31/21, Bigger1s accounts receivable balance is $550,000 and their balance in their Allowance for Bad Debt account is a credit balance of $25,000
Based on past experience and other factors, the corp estimates that 8% of its account receivable is uncollectable after preparing an Aging of their A/Rec
They determine this to be a material amount and therefore use the Allowance Method prepare the accounting for estimating Bad Debt Exp under the Allowance Method.