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3 years ago

Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables:

Business

1 answer:

Nutka1998 [239]3 years ago

6 0

Answer:

Mar. 17

Dr Cash $275

Dr Allowance for uncollectible accounts $1,000

Cr Accounts receivables $1,275

July 29

Dr Accounts receivables $1,000

Cr Bad Debts expense $1,000

Dr Cash $1,000

Cr Accounts receivables $1,000

Explanation:

Preparation of the journal entries using the direct write-off method of accounting for uncollectible receivables

Mar. 17

Dr Cash $275

Dr Allowance for uncollectible accounts $1,000

Cr Accounts receivables $1,275

($275+$1,000)

July 29

Dr Accounts receivables $1,000

Cr Bad Debts expense $1,000

Dr Cash $1,000

Cr Accounts receivables $1,000

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Next we compute the Weighted Average Contribution Margin as follows:

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