Sheena Stone 1S an attorney in Los Angeles. Stone uses the direct write-off method to account for uncollectible receivables.
At November 30, 2010, Stone’s accounts receivable totaled \($21,000\). During December, she earned revenue of \($24,000\) on account and collected \($23,000\) on account. She also wrote off uncollectible receivables of \($1,440\) on December 31, 2010.
1. Use the direct write-off method to journalize Stone’s write-off of the uncollectible receivables.
2. What is Stone’s balance of Accounts receivable at December 31, 2010? Does Stone expect to collect the total amount?