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. If an amount box does not require an entry, leave it blank. Bad Debt Expense Bad Debt Expense Accounts Receivable-J. Jackson Accounts Receivable-J. Jackson Accounts Receivable-L. Stanton Accounts Receivable-L. Stanton Accounts Receivable-C. Barton Accounts Receivable-C. Barton Accounts Receivable-S. Fenton Accounts Receivable-S. Fenton 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. If an amount box does not require an entry, leave it blank. - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - 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? $fill in the blank d5a96f08106f052_1

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter9: Receivables

Section: Chapter Questions

Problem 17E: Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of...

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Question

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. If an amount box does not require an entry, leave it blank.

		Bad Debt Expense	Bad Debt Expense
		Accounts Receivable-J. Jackson	Accounts Receivable-J. Jackson
		Accounts Receivable-L. Stanton	Accounts Receivable-L. Stanton
		Accounts Receivable-C. Barton	Accounts Receivable-C. Barton
		Accounts Receivable-S. Fenton	Accounts Receivable-S. Fenton

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. If an amount box does not require an entry, leave it blank.

		- Select -	- Select -
		- Select -	- Select -
		- Select -	- Select -
		- Select -	- Select -
		- Select -	- Select -
		- Select -	- Select -
		- Select -	- Select -

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?
$fill in the blank d5a96f08106f052_1

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