During August 2018, Lima Company recorded the following: Sales of $133,300 ($122,000 on account; $11,300 for cash). Ignore Cost of Goods So Collections on account, $106,400. Write-offs of uncollectible receivables, $990. Recovery of receivable previously written off, $800. Requirements 1. Journalize Lima's transactions during August 2018, assuming Lima uses the direct write-off method. 2. Journalize Lima's transactions during August 2018, assuming Lima uses the allowance method.

During August 2018, Lima Company recorded the following: Sales of $133,300 ($122,000 on account; $11,300 for cash). Ignore Cost of Goods So Collections on account, $106,400. Write-offs of uncollectible receivables, $990. Recovery of receivable previously written off, $800. Requirements 1. Journalize Lima's transactions during August 2018, assuming Lima uses the direct write-off method. 2. Journalize Lima's transactions during August 2018, assuming Lima uses the allowance method.

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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