120X1 $ 306,584,000 Sales Operating expenses and taxes, excluding uncollectible receivables 70,514,320 Accounts written off relating sales on account during 20X1 3,065,840 How much is net income for 20X1? (enter either an amount or formula) Is the direct write-off method in accord with generally accepted accounting No principles? GAAP requires an allowance method. The direct write-off method might be used if uncollectibles are immaterial or financial statements are not required to conform with GAAP. The direct write-off method is 20X2 Sales $ 613,168,000 Operating expenses and taxes, excluding uncollectible receivables 138,263,373 "Accounts written off relating to sales made on account during 20X1 9.197,520 Accounts written off relating to sales made on account during 20X2 6,193,616 How much is net income for 20X2? (enter either an amount or formula) Generally speaking, what is the reason the direct write-off approach is not Poor matching GAAP? The direct-write off method delays recognition of uncollectible accounts until years subsequent to the sales that produced them, thereby mismatching expenses with revenues. This can initially overstate income. At the end of 20X5, total receivables consisted of the following: Totals Estimated % uncollectible Current accounts S 30,658,400 1% Accounts 31-60 days old 15,329,200 3% Accounts 61-120 days old 5.109.733 5% Accounts over 120 days 2,043,893 10% The beginning of year balance in the allowance account was $1,379,628. During the year specific accounts totaling 5919,752 were written off as definitively not able to be collected. The beginning of year balance in the allowance account was $1,379,628. During the year specific accounts totaling $919,752 were written off as definitively not able to be collected. 16 Use the pick lists within the journal entry area to select the appropriate accounts to debit and credit for 20x5 related to the write off of accounts. Enter the appropriate amount within the boxed area in the debit column. Correct responses will turn green. -17 GENERAL JOURNAL 418 Date Accounts 49 Debit Credit Aowance for Uncollectible Accounts 919,152 50 4ccounts Receivable 9197162 To record the write-off of uncollectible accounts 52 Use the pick lists within the journal entry area to select the appropriate accounts to debit and credit for 20x5 related to the updating of the allowance account based on the aging. Enter the appropriate amount within the boxed area in the debit column. Correct responses will turn green. If you need help, complete the help questions below the journal entry. 58 GENERAL JOURNAL 54 Date Accounts Debit Credit 55 Uncollectible Accounts Expense 56 Allowance for uncollectible Accounts 57 To adjust the allowance account balance 58 If you need help determining the amounts for the above journal entry, work through the following hints? What does the aging reveal as the correct ending balance for the allowance account? Did you get the above question box to turn green? Answering "No" provides a hint. What is the balance of the allowance account after recording the write off, but before updating the allowance based on the aging? $ Did you get the above question box to turn green