**EX 9-5 Entries to Write Off Accounts Receivable***Creative Solutions Company, a computer consulting firm, has decided to write off the $11,750 balance of an account owed by a customer, Will Treadwell. 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.***Explanation:**In this exercise, you are required to journalize the write-off of a customer's account balance under two different methods:1. **Direct Write-Off Method:** This method involves directly writing off the uncollectible receivable against income at the time it is determined that the account is uncollectible.2. **Allowance Method:** This method requires estimating uncollectible accounts at the end of each period. It involves creating an allowance to match the anticipated loss with the revenue of the period in which it occurred. The write-off is then made against the allowance account rather than directly to expense.

Given, Write-off of uncollectibles = $11,750

EX 9-5 Entries to write off accounts receivable овJ. 3, 4 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. 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.

EX 9-5 Entries to write off accounts receivable овJ. 3, 4 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. 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.

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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