Chapter 8, Problem 8.17E

(a)

To determine

To record: The journal entry for sales using the direct method.

Introduction: The financial statements of a company include a balance sheet, income statement, and cash flow statement. All these statements help the internal and external users of financial statements help in analyzing and concluding the financial position of the respective company.

(b)

To determine

To state: The limitations of the direct write-off method.

Introduction: The financial statements of a company include a balance sheet, income statement, and cash flow statement. All these statements help the internal and external users of financial statements help in analyzing and concluding the financial position of the respective company.