Casebolt Company wrote off the following accounts
receivable as uncollectible
Casebolt Company wrote off the following accounts receivable as uncollectible for the first year
of its operations ending December 31, 2016:Customer _______________AmountShawn
Brooke ................ $ 4,650Eve Denton ...................... 5,180Art Malloy .....................
11,050Cassie Yost ...................... 9,120Total ........................... $30,000a. Journalize the writeoffs for 2016 under the direct write-off method.b. Journalize the write-offs for 2016 under the
allowance method. Also, journalize the adjusting entry for uncollectible accounts. The company
recorded $5,250,000 of credit sales during 2016. Based on past history and industry averages,
¾% of credit sales are expected to be uncollectible.c. How much higher (lower) would Casebolt
Company's 2016 net income have been under the direct write-off method than under the
allowance method?View Solution: Casebolt Company wrote off the following accounts
receivable as uncollectible
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