Answer:
Explanation:
The journal entries are shown below:
a. No entry passed
b. Office expense A/c Dr $38
To Cash $38
(Being bank service charges paid)
c. Cash A/c Dr $32
To Interest revenue $32
(Being interest received)
d. No entry passed
e. Accounts receivable A/c Dr $570
To Cash A/c $570
(Being check returned)
The deposit in transit and outstanding checks should not be recorded. So, no entry is passed.
Answer:
i think d is the correct answer
Answer:
violates the matching principle
Explanation:
The direct write-off method is an accounting method for recognizing bad debts expense arising from credit sales when individual invoices has been identified as uncollectible.
In Accounting, one of the weaknesses of the direct write-off method is that it violates the matching principle.
The direct write-off method is a method of accounting for uncollectible receivables.