Hazard wrote off the following accounts receivable as uncollectible for the year ending December 31, 2008: Customer

Question:

Hazard wrote off the following as uncollectible for the year ending December 31, 2008:
Customer Amount
Boss Hogg ... $ 5,000
Daisy Duke .... 3,500
Bo Duke ...... 6,300
Luke Duke ... 4,200
Total ..... $19,000

The company has provided the following for its on
December 31, 2008:

Hazard wrote off the following accounts receivable as uncollecti

a. Journalize the write-offs for 2008 under the direct write-off method.
b. Journalize the write-offs and the year-end adjusting entry for 2008 under the allowance method, presuming that the allowance account had a beginning balance of $18,000 and the company uses the analysis of receivables method.
c. Does the write-off of bad debts affect cash under the direct write-off and allowancemethods?

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