Answer:
Explanation:
Direct Method
Aug
a
Dr Accounts Receivable 55,000
Dr Cash 13,900
Cr Sales 68,900
b
Dr Cash 45,100
Cr Accounts Receivable 45,100
c
Dr Bad Debt Expense 1,680
Cr Accounts Receivable 1,680
d
Dr Accounts Receivable 300
Cr Bad Debt Expense 300
Dr Cash 300
Cr Accounts Receivable 300
Allowance Method
a
Dr Accounts Receivable 55,000
Dr Cash 13,900
Cr Sales 68,900
b
Dr Cash 45,100
Cr Accounts Receivable 45,100
c
Dr Allowance for Doubtful debts 1,680
Cr Accounts Receivable 1,680
d
Dr Accounts Receivable 300
Cr Allowance for Doubtful debts 300
Dr Cash 300
Cr Accounts Receivable 300
