American Contractors Uses the Direct Write-Off Method for Uncollectible Accounts

question 62

Essay

American Contractors uses the direct write-off method for uncollectible accounts. Record the following transactions in general journal form.
Feb 11 Sold merchandise on account to Leslie Noonan for $8,400. The cost to American for the merchandise is $4,500.
Mar 8 Received $2,650 cash payment from Leslie Noonan on her account.
Apr 10 Wrote off the balance due on Leslie's account as uncollectible.
May 3 Unexpectedly received $3,900 cash payment from Leslie Noonan on her account.
Payment was received in the same period as the write off.

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Definitions:

Quitting

The act of stopping or giving up a habit or activity, often used in the context of cessation of smoking or substance use.

Inaccurate Estimates

Faulty calculations or judgments about the magnitude or frequency of a particular event or phenomenon.

Short Run

A time period in economic analysis during which at least one input is fixed, affecting the operation of firms and markets.

Farms

Land and the buildings on it used for the cultivation of crops and rearing of animals to produce food, wool, and other products.