Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: Customer Amount Shawn Brooke $4,650   Eve Denton 5,180   Art Malloy 11,050   Cassie Yost 9,120     Total $30,000   a.  Journalize the write-offs under the direct write-off method. If an amount box does not require an entry, leave it blank.   Bad Debt Expense        Accounts Receivable-Shawn Brooke        Accounts Receivable-Eve Denton        Accounts Receivable-Art Malloy        Accounts Receivable-Cassie Yost  b.  Journalize the write-offs under the allowance method. Also, journalize the adjusting entry for uncollectible accounts. The company recorded $5,250,000 of credit sales during the year. Based on past history and industry averages, ¾% of credit sales are expected to be uncollectible. If an amount box does not require an entry, leave it blank. Write-off Allowance for Doubtful Accounts        Accounts Receivable-Shawn Brooke        Accounts Receivable-Eve Denton        Accounts Receivable-Art Malloy        Accounts Receivable-Cassie Yost      Adjustment Bad Debt Expense        Allowance for Doubtful Accounts  c.  How much higher (lower) would Casebolt Company's net income have been under the direct write-off method than under the allowance method? Higher  by $

Financial And Managerial Accounting
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Chapter8: Receivables
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Problem 17E: Entries for bad debt expense under the direct write-off and allowance methods Casebolt Company wrote...
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Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods

Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31:

Customer Amount
Shawn Brooke $4,650  
Eve Denton 5,180  
Art Malloy 11,050  
Cassie Yost 9,120  
  Total $30,000  

a.  Journalize the write-offs under the direct write-off method. If an amount box does not require an entry, leave it blank.

  Bad Debt Expense     
  Accounts Receivable-Shawn Brooke     
  Accounts Receivable-Eve Denton     
  Accounts Receivable-Art Malloy     
  Accounts Receivable-Cassie Yost 

b.  Journalize the write-offs under the allowance method. Also, journalize the adjusting entry for uncollectible accounts. The company recorded $5,250,000 of credit sales during the year. Based on past history and industry averages, ¾% of credit sales are expected to be uncollectible. If an amount box does not require an entry, leave it blank.

Write-off Allowance for Doubtful Accounts     
  Accounts Receivable-Shawn Brooke     
  Accounts Receivable-Eve Denton     
  Accounts Receivable-Art Malloy     
  Accounts Receivable-Cassie Yost     
Adjustment Bad Debt Expense     
  Allowance for Doubtful Accounts 

c.  How much higher (lower) would Casebolt Company's net income have been under the direct write-off method than under the allowance method?
Higher  by $

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