Journalizing transactions using the direct write-off method On June 1, 2018, Best Performance Cell Phones sold $21,000 of merchandise to Anthony Trucking Company on account. Anthony fell on hard times and on July 15 paid only $5,000 of the account receivable. After repeated attempts to collect, Best Performance finally wrote off its accounts receivable from Anthony on September 5. Six months later, March 5, 2019, Best Performance received Anthony’s check for $16,000 with a note apologizing for the late payment. Requirements Journalize the transactions for Best Performance Cell Phones using the direct write-off method. Ignore Cost of Goods Sold. What are some limitations that Best Performance will encounter when using the direct write-off method?
Journalizing transactions using the direct write-off method On June 1, 2018, Best Performance Cell Phones sold $21,000 of merchandise to Anthony Trucking Company on account. Anthony fell on hard times and on July 15 paid only $5,000 of the account receivable. After repeated attempts to collect, Best Performance finally wrote off its accounts receivable from Anthony on September 5. Six months later, March 5, 2019, Best Performance received Anthony’s check for $16,000 with a note apologizing for the late payment. Requirements Journalize the transactions for Best Performance Cell Phones using the direct write-off method. Ignore Cost of Goods Sold. What are some limitations that Best Performance will encounter when using the direct write-off method?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Journalizing transactions using the direct write-off method
On June 1, 2018, Best Performance Cell Phones sold $21,000 of merchandise to Anthony Trucking Company on account. Anthony fell on hard times and on July 15 paid only $5,000 of the account receivable. After repeated attempts to collect, Best Performance finally wrote off its
Requirements
- Journalize the transactions for Best Performance Cell Phones using the direct write-off method. Ignore Cost of Goods Sold.
- What are some limitations that Best Performance will encounter when using the direct write-off method?
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