e the accounting equation to show how Jack’s would write off the account using (a) the direct write-off method and (b) the allowance method for bad debts.
Jacks Upholstery has determined that
Star
Builders’ accounts receivable balance of
$6,000 is uncollectible. Use the accounting equation to show how
Jack
’s would write off the account using
(a) the direct write-off method and (b) the allowance method for bad debts.
Star
Builders’ accounts receivable balance of
$6,000 is uncollectible. Use the accounting equation to show how
Jack
’s would write off the account using
(a) the direct write-off method and (b) the allowance method for bad debts.
(a) First record in the accounting equation how
Jack
’s Upholstery would write off the account using the direct
write-off method.
(Use parentheses or a minus sign when decreasing components or entering increases to contra accounts. Leave unused cells blank.)
’s Upholstery would write off the account using the direct
write-off method.
(Use parentheses or a minus sign when decreasing components or entering increases to contra accounts. Leave unused cells blank.)
|
|
Shareholders’ Equity |
|||||||||
|
Assets |
= |
Liabilities |
+ |
Contributed Capital |
+ |
Retained Earnings |
||||
|
$ |
Account |
$ |
Account |
$ |
Account |
$ |
Account |
|
|
||||||||||
(b) Now record in the accounting equation how
Jacks Upholstery would write off the account using the allowance method for bad debts.
(Use parentheses or a minus sign when decreasing components or entering increases to contra accounts. Leave unused cells blank.)
(Use parentheses or a minus sign when decreasing components or entering increases to contra accounts. Leave unused cells blank.)
|
|
Shareholders’ Equity |
|||||||||
|
Assets |
= |
Liabilities |
+ |
Contributed Capital |
+ |
Retained Earnings |
||||
|
$ |
Account |
$ |
Account |
$ |
Account |
$ |
Account |
| . | |
|
|
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