Explain why companies must use the Allowance Method, and not the Direct Write-Off Method, when dealing with collectible accounts. Then show a journal entry writing off an account with both methods. PLEASE DO NOT HANDWRITE THE RESPONSE!!

Explain why companies must use the Allowance Method, and not the Direct Write-Off Method, when dealing with collectible accounts. Then show a journal entry writing off an account with both methods. PLEASE DO NOT HANDWRITE THE RESPONSE!!

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter14: Accounting For Uncollectible Accounts Receivable

Section14.2: Writing Off And Collecting Uncollectible Accounts Receivable

Problem 1AYU

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Explain why companies must use the Allowance Method, and not the Direct Write-Off Method, when dealing with collectible accounts. Then show a journal entry writing off an account with both methods. Please be sure to include actual amounts in these problems. They can be made up amount but they need to be amounts that a company would use in these situations. PLEASE DO NOT HANDWRITE THE RESPONSE!!
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