Creative Solutions Company, a computer consulting firm, has decided to write off the $11,750 balance of an account owed by a customer, Wil Treadwell. On March 1, 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. Refer to the Chart of Accounts for exact wording of account titles. Direct Write Off 1 2 Allowance Method 1 2 Date Date 1 2 GENERAL JOURNAL Description GENERAL JOURNAL Description Date The adjusting entry to record uncollectible accounts is: GENERAL JOURNAL Description Post ref Post ref Expense to be recorded = $750,000 x 2% = $15,000 Debit Post ref Debit Assume that a business sold $750,000 worth of merchandise on credit. The business estimates that 2% of all credit sales are uncollectible. Page Debit Credit Page Credit Page Credit 1 1 2 1 2 2

Creative Solutions Company, a computer consulting firm, has decided to write off the $11,750 balance of an account owed by a customer, Wil Treadwell. On March 1, 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. Refer to the Chart of Accounts for exact wording of account titles. Direct Write Off 1 2 Allowance Method 1 2 Date Date 1 2 GENERAL JOURNAL Description GENERAL JOURNAL Description Date The adjusting entry to record uncollectible accounts is: GENERAL JOURNAL Description Post ref Post ref Expense to be recorded = $750,000 x 2% = $15,000 Debit Post ref Debit Assume that a business sold $750,000 worth of merchandise on credit. The business estimates that 2% of all credit sales are uncollectible. Page Debit Credit Page Credit Page Credit 1 1 2 1 2 2

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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