Direct Write-Off Method: The accounting method for uncollectible receivables which do not anticipate any bad expense by creating provision for bad debt at the period of sale is called Direct Write-Off Method. Under this method, the bad debts are written off directly when the business determines a particular customer as uncollectible. Allowance method: Under allowance method, an allowance for bad debts is created with estimation before the bad debts actually become uncollectible. Allowance method aims at accounting for the bad debts during same period in which the sale occurred. To determine : 1. Journalize the transactions of Ritter during 2016 using direct write-off method. 2. Journalize the transactions of Ritter during 2016 using allowance method.

Question

Want to see the full answer?

Answer 1

Question

Chapter 9, Problem E9.20E

To determine

Direct Write-Off Method:

The accounting method for uncollectible receivables which do not anticipate any bad expense by creating provision for bad debt at the period of sale is called Direct Write-Off Method. Under this method, the bad debts are written off directly when the business determines a particular customer as uncollectible.

Allowance method:

Under allowance method, an allowance for bad debts is created with estimation before the bad debts actually become uncollectible. Allowance method aims at accounting for the bad debts during same period in which the sale occurred.

To determine:

1.

Journalize the transactions of Ritter during 2016 using direct write-off method.

2.

Journalize the transactions of Ritter during 2016 using allowance method.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Provide correct solution and accounting

If image is blurr then comment i will write values

please give me true answer

Answer 2

Question

Chapter 9, Problem E9.20E

To determine

Direct Write-Off Method:

The accounting method for uncollectible receivables which do not anticipate any bad expense by creating provision for bad debt at the period of sale is called Direct Write-Off Method. Under this method, the bad debts are written off directly when the business determines a particular customer as uncollectible.

Allowance method:

Under allowance method, an allowance for bad debts is created with estimation before the bad debts actually become uncollectible. Allowance method aims at accounting for the bad debts during same period in which the sale occurred.

To determine:

1.

Journalize the transactions of Ritter during 2016 using direct write-off method.

2.

Journalize the transactions of Ritter during 2016 using allowance method.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 9, Problem E9.20E

To determine

Direct Write-Off Method:

The accounting method for uncollectible receivables which do not anticipate any bad expense by creating provision for bad debt at the period of sale is called Direct Write-Off Method. Under this method, the bad debts are written off directly when the business determines a particular customer as uncollectible.

Allowance method:

Under allowance method, an allowance for bad debts is created with estimation before the bad debts actually become uncollectible. Allowance method aims at accounting for the bad debts during same period in which the sale occurred.

To determine:

1.

Journalize the transactions of Ritter during 2016 using direct write-off method.

2.

Journalize the transactions of Ritter during 2016 using allowance method.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 9, Problem E9.20E

To determine

Direct Write-Off Method:

The accounting method for uncollectible receivables which do not anticipate any bad expense by creating provision for bad debt at the period of sale is called Direct Write-Off Method. Under this method, the bad debts are written off directly when the business determines a particular customer as uncollectible.

Allowance method:

Under allowance method, an allowance for bad debts is created with estimation before the bad debts actually become uncollectible. Allowance method aims at accounting for the bad debts during same period in which the sale occurred.

To determine:

1.

Journalize the transactions of Ritter during 2016 using direct write-off method.

2.

Journalize the transactions of Ritter during 2016 using allowance method.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 9, Problem E9.20E

To determine

Direct Write-Off Method:

The accounting method for uncollectible receivables which do not anticipate any bad expense by creating provision for bad debt at the period of sale is called Direct Write-Off Method. Under this method, the bad debts are written off directly when the business determines a particular customer as uncollectible.

Allowance method:

Under allowance method, an allowance for bad debts is created with estimation before the bad debts actually become uncollectible. Allowance method aims at accounting for the bad debts during same period in which the sale occurred.

To determine:

1.

Journalize the transactions of Ritter during 2016 using direct write-off method.

2.

Journalize the transactions of Ritter during 2016 using allowance method.

Answer 6

Chapter 9, Problem E9.20E

To determine

Direct Write-Off Method:

The accounting method for uncollectible receivables which do not anticipate any bad expense by creating provision for bad debt at the period of sale is called Direct Write-Off Method. Under this method, the bad debts are written off directly when the business determines a particular customer as uncollectible.

Allowance method:

Under allowance method, an allowance for bad debts is created with estimation before the bad debts actually become uncollectible. Allowance method aims at accounting for the bad debts during same period in which the sale occurred.

To determine:

1.

Journalize the transactions of Ritter during 2016 using direct write-off method.

2.

Journalize the transactions of Ritter during 2016 using allowance method.

Answer 7

Chapter 9, Problem E9.20E

To determine

Direct Write-Off Method:

The accounting method for uncollectible receivables which do not anticipate any bad expense by creating provision for bad debt at the period of sale is called Direct Write-Off Method. Under this method, the bad debts are written off directly when the business determines a particular customer as uncollectible.

Allowance method:

Under allowance method, an allowance for bad debts is created with estimation before the bad debts actually become uncollectible. Allowance method aims at accounting for the bad debts during same period in which the sale occurred.

To determine:

1.

Journalize the transactions of Ritter during 2016 using direct write-off method.

2.

Journalize the transactions of Ritter during 2016 using allowance method.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 9 - 1. With good internal controls, the person who...Ch. 9 - Prob. 2QC Ch. 9 - Which of the following is a limitation of the...Ch. 9 - 3. The entry to record a write-off of an...Ch. 9 - Brickman Company uses the allowance method to...Ch. 9 - Brickman’s ending balance of accounts Receivable...Ch. 9 - At December 31 year-end, Crain Company has an...Ch. 9 - Using the data in the preceding question, what...Ch. 9 - At year-end, Schultz Company has cash of $11,600,...Ch. 9 - Using the data in the preceding question, assume...

Concept explainers

Videos

Want to see the full answer?

Chapter 9 Solutions