Chapter 9, Problem S9.3SE

Applying the direct write-off method to account for uncollectibles

Learning Objective 2

Shawna Valley is an attorney in Los Angeles. Valley uses the direct write-off method to account for uncollectible receivables.
At April 30, 2018, Valley’s accounts receivable totaled $9,000. During May, she earned revenue of $22,000 on account and collected $5,000 on account. She also wrote off uncollectible receivables of $1,100 on May 31, 2018.

Requirements

1. Use the direct write-off method to journalize Valley’s write-off of the uncollectible receivables.
2 What is Valley’s balance of Accounts Receivable at May 31, 2018?