During August 2018, Helio Company recorded the following:

bullet Sales of $ 109,500 ($ 99,000 on account; $ 10,500 for cash). Ignore Cost of Goods Sold.

bullet Collections on account, $ 82,500.

bullet Write-offs of uncollectible receivables, $ 1,480.

bullet Recovery of receivable previously written off, $ 300.

Requirements

1. Journalize Helio's transactions during August 2018, assuming Helio uses the direct write-off method.

2. Journalize Helio's transactions during August 2018, assuming Helio uses the allowance method.

Requirement 1. Journalize Helio's transactions during August 2018, assuming Helio uses the direct write-off method.

1. Sales of $ 109,500 ($ 99,000 on account; $ 10,500 for cash). Ignore Cost of Goods Sold. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Prepare a single compound journal entry.)

Date Accounts and Explanation Debit Credit Aug. Accounts Receivable Sales Revenue

2. Collections on account, $ 82,500.

Date Accounts and Explanation Debit Credit Aug.

3. Write-offs of uncollectible receivables, $ 1,480.

Date Accounts and Explanation Debit Credit Aug.

4. Recovery of receivable previously written off, $ 300. Start by preparing the entry to reinstate the receivable.

Date Accounts and Explanation Debit Credit Aug.

5. Now prepare the entry to show the collection of the previously written off receivable.

Date Accounts and Explanation Debit Credit Aug.

Requirement 2.

1. Journalize Helio's transactions during August 2018, assuming Helio uses the allowance method.

Sales of $ 109,500 ($ 99,000 on account; $ 10,500 for cash). Ignore Cost of Goods Sold. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Prepare a single compound journal entry.)

Date Accounts and Explanation Debit Credit Aug.

2. Collections on account, $ 82,500.

Date Accounts and Explanation Debit Credit Aug.

3. Write-offs of uncollectible receivables, $ 1,480.

Date Accounts and Explanation Debit Credit Aug.

4. Recovery of receivable previously written off, $ 300. Start by preparing the entry to reinstate the receivable.

Date Accounts and Explanation Debit Credit Aug.

Now prepare the entry to show the collection of the previously written off receivable.