Business, 14.11.2019 01:31 Dragonskeld

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.
(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.
(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?

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Morry company wrote off the following accounts receivable as uncollectible for the first year of its...

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