Maria Rivera, owner of Rivera Pharmacy, uses the direct write off method in accounting for uncollectible accounts. Record the following transactions in general journal form Wrote off s2,240 ewed by Joe Balouka, who has no assets. Wrote off 1,480 ewed by Alce Rose, who declared * bankruptey 88 00 00
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Step by step
Solved in 2 steps
