Creative Solutions Company, a computer consulting firm, has decided to write off the $13,780 balance of an account owed by a customer, Wil Treadwell.

On December 31, journalize the entry to record the write-off, assuming that (a) the direct write-off methodis used and (b) the allowance methodis used. Refer to the Chart of Accounts for exact wording of account titles.

(a) On December 31, journalize the entry to record the write-off, assuming that the direct write-off methodis used. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2

(b) On December 31, journalize the entry to record the write-off, assuming that the allowance methodis used. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2