SANCHEZ COMPUTER CENTER

The Sanchez Computer Center currently has an $10,900 balance in Accounts Receivable. Here is a current schedule of Accounts Receivable:

Sanchez Computer Center
Schedule of Account Receivable
March 31, 201X
Taylor Golf		$3,200
Vita Needle		6,800
Accu Pac		900
Total		$10,900

Figure 1

Tasks

Although Accu Pacs account is not 90 days past due, Freedman has determined that it is necessary to write off the entire balance because the business has been foreclosed. Make the necessary journal entry using the direct write-off method.

1. The following accounts have been added to the chart of accounts: Bad Debt Expense #5140.