Chapter 8, Problem 8.3SE

Applying the direct write-off method to account for uncollectibles

Susan Knoll is an attorney in Los Angeles. Knoll uses the direct write-off method to account for uncollectible receivables.

At January 31, 2016, Knolls accounts receivable totaled $18,000. During February, she earned revenue of $21,000 on account and collected $23,000 on account. She also wrote off uncollectible receivables of $1,050 on February 29, 2016.

Requirements

1. Use the direct write-off method to journalize Knoll s write-off of the uncollectible receivables.

2. What is Knolls balance of Accounts Receivable at February 29, 2016?