Response to the following questions:
1. Jadelis Resources, a computer consulting firm, has decided to write off the $12,500 balance of an account owed by a customer. Journalize the entry to record the write-off, assuming that (a) the direct write-off method is used, and (b) the allowance method is used.
2. During its first year of operations, West Plumbing Supply Co. had net sales of $1,800,000, wrote off $51,000 of accounts as uncollectible using the direct write-off method, and reported net income of $125,000. Determine what the net income would have been if the allowance method had been used, and the company estimated that 3% of net sales would be uncollectible.