22. Texas Roundup uses the direct write-off method in accounting for uncollectible accounts. Year 1 May 28 July 5 Sold merchandise on account to South Shore Motors, $11,000. Received $5,000 from South Shore Motors and wrote off the remainder owed on the sale of May 28 as uncollectible Year 2 Mar. 15 Reinstated the account of South Shore Motors that had been written off on July 5 of the previous year and received $6,000 cash in full settlement. Required: Record the above transactions in general journal form. ANS: Year 1 GENERAL JOURNAL Post Ref Deb bit Credit Date Year 2 GENERAL JOURNAL Page 1 Post DescriptionRef Debit Credit 23. On a work sheet, the Debit columns of the Income Statement and the Balance Sheet both total more than the Credit columns. This represents a. an error in the accounting procedures for the period. b. a net loss. c a net income. d. no gain or loss. 24. The difference between current assets and current liabilities is called 25. Reversing entries are made in the a general journal. b. sales journal. c. purchases journal. d. cash receipts journal