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Morry Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: Customer Amount $10,000 3. Jackson
Morry Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: Customer Amount $10,000 3. Jackson L. Stanton 9,500 C. Barton 13,100 S. Fenton Total 2,400 $35,000 Required: a. Journalize the write-offs for the current year under the direct write-off method. If an amount box does not require an entry, leave it blank. b. Journalize the write-offs for the current year under the allowance method. Also, journalize the adjusting entry for uncollectible receivables assuming the company made $2,400,000 of credit sales during the year and the industry average for uncollectible receivables is 1.5% of credit sales. If an amount box does not require an entry, leave it blank, Write-off Fotal $35,000 Required: . Journalize the write-offs for the current year under the direct write-off method. If an amount box does not require an entry, leave it blank. b. Journalize the write-offs for the current year under the allowance method. Also, journalize the adjusting entry for uncollectible receivables assuming the company made $2,400,000 of credit sales during the year and the industry average for uncollectible receivables is 1.5% of credit sales. If an amount box does not require an entry, leave it blank. Write-off Bad debt 0000 c. How much higher or lower would Morry Company's net income have been under the direct write-off method than under the allowance method
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