On June1, Top Performance Cell Phones sold 21,000 of merchadise to Adam Trucking Company on account. Adam fell on hard times and on July 15 paid only 9,000 of the account receivable. After repeated attemps to collect, Top Performance finally wrote off its accounts receivable from Adam on September 5. Six months later, March 5,Top Performance feceived Adam's check for 12,000 with a note apologizing for the late payments.

Requirement 1. Journalize the transactions for Top Performance Cell Phones using the direct write -off method. Ignore Cost of Goods Sold. (Record debits first,then, credits. Select the explanation on the last line of the journal entry table)

June 1: Top Performance Cell Phones sold 21,000 of merchandise to Adam Trucking Company on account. Ignore Costof Goods Sold.

Requirements: journalize the transactions for Top Performance Cell Phones using the direct write-off method. Ignore Cost of Goods Sold.

2. What are some limitations that Top Performance will encounter when using the direct write-off method?