Direct Write-Off MethodWilliams & Hendricks Distributors uses the direct write-off method in accounting foruncollectible accounts.20-1Feb.Sold merchandise on account to Merry Merchants, $17,500.18Mar.Sold merchandise on account to Utter Unicorns, $14,300.22June Received $10,000 from Merry Merchants and wrote off the remainder owed on the3 sale of February 18 as uncollectible.Received $8,000 from Utter Unicorns and wrote off the remainder owed on the saleSept.of March 22 as uncollectible.Nov. Reinstated the account of Merry Merchants, which had been written off on June 3,13 and received $7,500 cash in full settlement.20-2Jan. Reinstated the account of Utter Unicorns, which had been written off on September9 of the previous year, and received $6,300 cash in full settlement.17 Required:1. Record these transactions in general journal form.Page:DOC. POST.NO. REF.DATEACCOUNT TITLEDEBITCREDIT20-11Feb. 18Accounts Payable/Merry Merchants♥17,5002Sales17,500 23Sold merchandise on account34Mar. 22 Accounts Receivable/Utter Unicorns14,30056Sales14,3006.7Sold merchandise on accountJun. 39.101011Collection on account11121213 Jun. 313141415Wrote off uncollectible account15161617 Sept. 917181819Collection on account19202021 Sept. 921222223Wrote off uncollectible account23242425 Nov. 1325262627Reinstated account receivable27282829 Nov. 1329303031Collection on account31323220-233Jan. 1733343435Reinstated account receivable35363637 Jan. 1737383839Collection on account39I II

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Description: Direct Write-Off MethodWilliams & Hendricks Distributors uses the direct write-off method in accounting foruncollectible accounts.20-1Feb.Sold merchandise on account to Merry Merchants, $17,500.18Mar.Sold merchandise on account to Utter Unicorns, $1

Under direct write off method, the bad debt expense is not estimate and allowance is not created for…

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Direct Write-Off Method Williams & Hendricks Distributors uses the direct write-off method in accounting for uncollectible accounts. 20-1 Feb. Sold merchandise on account to Merry Merchants, $17,500. 18 Mar. Sold merchandise on account to Utter Unicorns, $14,300. 22 June Received $10,000 from Merry Merchants and wrote off the remainder owed on the sale of February 18 as uncollectible.

Direct Write-Off Method Williams & Hendricks Distributors uses the direct write-off method in accounting for uncollectible accounts. 20-1 Feb. Sold merchandise on account to Merry Merchants, $17,500. 18 Mar. Sold merchandise on account to Utter Unicorns, $14,300. 22 June Received $10,000 from Merry Merchants and wrote off the remainder owed on the sale of February 18 as uncollectible.

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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