Refer to Exercise. On April 30, Hilltop Party Planners had a $33,000 balance in Accounts Receivable and

Question:

Refer to Exercise.
On April 30, Hilltop Party Planners had a $33,000 balance in and a $4,000 credit balance in Allowance for Uncollectible Accounts. During May, the store made credit sales of $156,000. May collections on account were $132,000, and write-offs of uncollectible receivables totaled $2,300. Uncollectible-account expense is estimated as 2% of revenue.

Requirements
1. Record uncollectible-account expense for May by the direct write-off method.
2. What amount of would Hilltop report on its May 31 under the direct write-off method? Does it expect to collect the full amount?

Accounts Receivable
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