Comparison of the direct write-off an allowance methods of accounting and ferbad debts In its 1st year of business wicked wheels has a net income of a $146000 exclusive of any adjustment for badd day expense so far no adjustment has been made to write-off on close able accounts or to estimate badd debts the will of in datas are as follows

Write-off of uncollectible accounts during this year $10500 Net Credit sales $650000 Estimated percentage of net credit sales that Will be uncollected 2%

Required Under the direct write off method net income is _____dollars and under the allowance method net income is ____dollars the ____ results in higher net income but the method of that should be used is the _____because this is the preferred method under accounting standers as it follows the _____ the direct write-off method should only be used in still mount of bad that is _____

Caloulator Print Item Chapters 6 and 7 Review AssignmeBook Comparison of the Direct Write-Off and Allowance Methods of Accou In its first year of business, Wicked Wheels ba uncollectible s net income of $146,000, exclusive of any adjustment for bad debts expense. So far, no adjustments have been made to write off accounts or to estimate bad debts. The relevant data are as follows: Write-offs of uncollectible accounts during the year Net credit sales Estimated percentage of net credit sales that will be uncollectible Required: $10,500 $650,000 2% The results in the higher net and under the allowance method, net income is Under the direct wite of method. net income is sand under the allowance method, nt income is ? ,The because this is the preferred method under accounting standards as it follows the income but the method that should be used is the direct write-off method should only be used if the amount of bad debts is