On June 1, 2018, Peak Performance Cell Phones sold $20,000 of merchandise to Alright Trucking Company AlrightTruckingCompany on account. Alright fell on hard times and on July 15 paid only $7,500 of the account receivable. After repeated attempts tocollect, Peak Performance finally wrote off its accounts receivable from Alright on September 5. Six monthslater, March 5, 2019, Peak Performance

received Alright's check for $12,500 with a note apologizing for the late payment.

1. Journalize the transactions for Peak Performance Cell Phones using the directwrite-off method. Ignore Cost of Goods Sold.

2.What are some limitations that Peak Performance will encounter when using the directwrite-off method?

Requirement 1. Journalize the transactions for Peak Performance Cell Phone using the directwrite-off method. Ignore Cost of Goods Sold. (Record debitsfirst, then, credits. Select the explanation on the last line of the journal entrytable.)

June 1: Peak Performance Cell Phones sold $20,000 of merchandise to Alright Trucking Company. Ignore cost of goods solds