Ask Question
20 November, 19:48

Sharon Silver is an attorney in Los Angeles. Silver uses the directâ write-off method to account for uncollectible receivables. At April 30 comma 2018â, Silverâ's accounts receivable totaled $ 22 comma 000. During Mayâ, she earned revenue of $ 25 comma 000 on account and collected $ 16 comma 000 on account. She also wrote off uncollectible receivables of $ 3 comma 250 on May 31â, 2018. Read the requirements.

1.) Use the direct write-off method to journalize Silver's write-off of the uncollectible receivables.

2.) What is Silver's balance of Accounts Receivable at May 31, 2018?

+2
Answers (1)
  1. 20 November, 21:47
    0
    1. Bad debt expense A/c Dr $3,250

    To Account receivable A/c $3,250

    (Being the uncollectible receivables are recorded)

    2. $27,750

    Explanation:

    1. The adjusting entry is shown below:

    Bad debt expense A/c Dr $3,250

    To Account receivable A/c $3,250

    (Being the uncollectible receivables are recorded)

    2. The computation of ending balance of account receivable is shown below:

    Ending account receivable balance = Beginning account receivable + credit sales - collections - written off amount

    = $22,000 + $25,000 - $16,000 - $3,250

    = $27,750
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Sharon Silver is an attorney in Los Angeles. Silver uses the directâ write-off method to account for uncollectible receivables. At April 30 ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers