Question
Asked Oct 16, 2019
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The general ledger of the Jumper Incorporated is showing an Accounts Receivable balance of $80,000, Sales
Revenue of $650,000, and Sales Returns and Allowances of $30,000. If Jumper Inc used the direct write-off
method to account for uncollectible accounts, do the adjusting journal entry on   December 31st, assuming
Jumper Inc determines that John Hancock's $2,500 balance is uncollectable.

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Expert Answer

Step 1

Direct Write-off Method:

 

Direct write-off method is used to recognize bad debt expenses that can arise from credit sales. Under this method, the company will not pre...

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