CJM Sales Uses the Direct Write-Off Method in Accounting for Uncollectible

question 80

Essay

CJM Sales uses the direct write-off method in accounting for uncollectible accounts.
Record the following transactions in general journal form.Use the periodic method.
May 28 $\quad$ Sold merchandise on account to North End Motors for $\$ 18,000$ .
Jul 11 $\quad$$\quad$ Received $\$ 13,000$ from North End Motors on their account.
Jul 30 $\quad$$\quad$ Wrote off the balance due as uncollectible.

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Definitions:

Existing Goods

Products that have already been manufactured and are available for sale or distribution.

Revenue Analysis

The process of examining revenue data to understand the financial performance of a business and to identify trends and opportunities for improvement.

Profit Margin

The amount a product sells for above the total cost of the product itself.

Objectives

Specific, measurable goals that an organization or individual aims to achieve within a timeframe.