Becker Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31, 2008 a Journalize the write offs for 2008 under the direct write off method b Journalize the write offs for 2008 under the allowance method Also, journalize the adjus...

a Direct Writeoff Method Under the direct writeoff method bad debt expense is recognized only when a ...

Becker Company wrote off the following accounts receivable as uncollectible for the first year of its operations

Question:

Becker Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31, 2008:

Customer Skip Simon Clarence Watson Bill Jacks Matt Putnam Total Amount $20,000 13,500 7,300 4,200 $45,000

a. Journalize the write-offs for 2008 under the direct write-off method.
b. Journalize the write-offs for 2008 under the allowance method. Also, journalize the adjusting entry for uncollectible accounts. The company recorded $2,000,000 of credit sales during 2008. Based on past history and industry averages, 3% of credit sales are expected to be uncollectible.
c. How much higher (lower) would Becker Company's 2008 net income have been under the direct write-off method than under the allowance method?

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