Morry Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: Customer Amount J. Jackson $10,000 L. Stanton 9,500 C. Barton 13,100 S. Fenton 7,400 Total $40,000
-
Morry Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31:
Customer Amount J. Jackson $10,000 L. Stanton 9,500 C. Barton 13,100 S. Fenton 7,400 Total $40,000 Required:
a. Journalize the write-offs for the current year under the direct write-off method. If an amount box does not require an entry, leave it blank.
Bad Debt ExpenseBad Debt Expense Accounts Receivable-J. Jackson Accounts Receivable-J. Jackson Accounts Receivable-L. Stanton Accounts Receivable-L. Stanton Accounts Receivable-C. Barton Accounts Receivable-C. Barton Accounts Receivable-S. Fenton Accounts Receivable-S. Fenton b. Journalize the write-offs for the current year under the allowance method. Also, journalize the
adjusting entry for uncollectible receivables assuming the company made $2,400,000 of credit sales during the year and the industry average for uncollectible receivables is 1.50% of credit sales. If an amount box does not require an entry, leave it blank.- Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - c. How much higher or lower would Morry Company's net income have been under the direct write-off method than under the allowance method?
$fill in the blank d5a96f08106f052_1
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
