American Contractors Uses the Direct Write-Off Method for Uncollectible Accounts

American Contractors uses the direct write-off method for uncollectible accounts. Record the following transactions in general journal form.
Feb 11 Sold merchandise on account to Leslie Noonan for $8,400. The cost to American for the merchandise is $4,500.
Mar 8 Received $2,650 cash payment from Leslie Noonan on her account.
Apr 10 Wrote off the balance due on Leslie's account as uncollectible.
May 3 Unexpectedly received $3,900 cash payment from Leslie Noonan on her account.
Payment was received in the same period as the write off.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free