Chapter 9, Problem 5QS

a

To determine

Concept Introduction:

Write-off of bad debts: When a company sells goods on credit, it is expected that customers may not pay at the end of the credit period, then those customers' accounts are considered uncollectible. Uncollectible accounts are written off and expensed at the end of the year.

The journal entry to record write-off using the direct write-off method.

b

To determine

Concept Introduction:

Write-off of bad debts: When a company sells goods on credit, it is expected that customers may not pay at the end of the credit period, then those customers' accounts are considered uncollectible, uncollectible accounts are written-off and expensed at the end of the year.

The journal entry to the write-off of uncollectible using allowance method.