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Using the Direct Write-Off Method The Parker Supply Company uses the direct write-off
Chapter 24, Problem 24-1(choose chapter or problem)
Using the Direct Write-Off Method
The Parker Supply Company uses the direct write-off method of accounting for uncollectible accounts.
Instructions In your working papers:
1. Record the following transactions on page 21 of the general journal.
2. Post the transactions to the appropriate accounts.
| Date | Transactions |
| Apr. 10 | Sold merchandise on account to Sonya Dickson, $600 plus $30 sales tax, Sales Slip 928. |
| Nov. 30 | Wrote off Sonya Dickson’s account as uncollectible, $630, Memorandum 78. |
| Dec. 30 | Received $630 from Sonya Dickson in full payment of her account. This account was written off on November 30, Memorandum 89 and Receipt 277. |
Questions & Answers
QUESTION:
Using the Direct Write-Off Method
The Parker Supply Company uses the direct write-off method of accounting for uncollectible accounts.
Instructions In your working papers:
1. Record the following transactions on page 21 of the general journal.
2. Post the transactions to the appropriate accounts.
| Date | Transactions |
| Apr. 10 | Sold merchandise on account to Sonya Dickson, $600 plus $30 sales tax, Sales Slip 928. |
| Nov. 30 | Wrote off Sonya Dickson’s account as uncollectible, $630, Memorandum 78. |
| Dec. 30 | Received $630 from Sonya Dickson in full payment of her account. This account was written off on November 30, Memorandum 89 and Receipt 277. |
Step 1 of 3
The direct write-off method uses the accounts receivables directly to reduce the balance by recognising the expense as an uncollectible expense or bad debt.