Concept explainers
Journalizing transactions using the direct write-off method
Learning Objectives 1, 2
On June 1, 2018, Best Performance Cell Phones sold $21 ,000 of merchandise to Anthony Trucking Company on account. Anthony fell on hard times and on July 15 paid only $5,000 of the account receivable. After repeated attempts to collect, Best Performance finally wrote off its
Requirements
1. Journalize the transactions for Best Performance Cell Phones using the direct write-off method. Ignore Cost of Goods Sold.
2. What are some limitations that Best Performance will encounter when using the direct write-off method?
Use the following information to answer Exercises E9-18 and E9-19.
At January 1, 2018, Hilltop Flagpoles had Accounts Receivable of $28,000, and Allowance for
a. Sales of S185,000 ($164,000 on account; $21,000 for cash). Ignore Cost of Goods Sold.
b. Collections on account, $135,000.
c. Write-offs of uncollectible receivables, $2,300.
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Chapter 9 Solutions
EBK HORNGREN'S ACCOUNTING
Additional Business Textbook Solutions
Principles of Accounting Volume 1
Horngren's Accounting (11th Edition)
Intermediate Accounting (2nd Edition)
Managerial Accounting (5th Edition)
Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)
Construction Accounting And Financial Management (4th Edition)
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