Seaforth International wrote off the following accounts
receivable as uncollectible
Seaforth International wrote off the following accounts receivable as uncollectible for the year
ending December 31, 2016:Customer __________________AmountKim Abel ...........................
$ 21,550Lee Drake ............................ 33,925Jenny Green .......................... 27,565Mike Lamb
........................... 19,460Total ............................... $102,500The company prepared the
following aging schedule for its accounts receivable on December 31, 2016:Aging Class
(Number Receivables Balance Estimated Percent ofof Days Past Due) _________on December
31 ________Uncollectible Accounts0-30 days .......................... $ 715,000
.................................... 1%31-60 days ........................... 310,000 ..................................... 261-90
days .......................... 102,000 ..................................... 1591-120 days .......................... 76,000
..................................... 30More than 120 days ................. 97,000 .....................................
60Total receivables ............... $1,300,000a. Journalize the write-offs for 2016 under the direct
write-off method.b. Journalize the write-offs and the year-end adjusting entry for 2016 under the
allowance method, assuming that the allowance account had a beginning balance of $95,000
on January 1, 2016, and the company uses the analysis of receivables method.c. How much
higher (lower) would Seaforth International's 2016 net income have been under the allowance
method than under the direct write-off method?View Solution: Seaforth International wrote off
the following accounts receivable as uncollectible
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