
Concept explainers
Journalizing transactions using the direct write-off method
Learning Objectives 1, 2
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
1. Journalize the transactions for Best Performance Cell Phones using the direct write-off method. Ignore Cost of Goods Sold.
2. What are some limitations that Best Performance will encounter when using the direct write-off method?
Use the following information to answer Exercises E9-18 and E9-19.
At January 1, 2018, Hilltop Flagpoles had Accounts Receivable of $28,000, and Allowance for
a. Sales of S185,000 ($164,000 on account; $21,000 for cash). Ignore Cost of Goods Sold.
b. Collections on account, $135,000.
c. Write-offs of uncollectible receivables, $2,300.

Learn your wayIncludes step-by-step video

Chapter 9 Solutions
Horngren's Accounting (12th Edition)
Additional Business Textbook Solutions
Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
Operations Management
Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
Principles of Economics (MindTap Course List)
Intermediate Accounting (2nd Edition)
Financial Accounting: Tools for Business Decision Making, 8th Edition
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningFinancial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningCollege Accounting (Book Only): A Career ApproachAccountingISBN:9781305084087Author:Cathy J. ScottPublisher:Cengage Learning
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeCollege Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub



