Griggs Company Uses the Direct Write-Off Method of Accounting for Uncollectible

question 97

Essay

Griggs Company uses the direct write-off method of accounting for uncollectible accounts receivable. On December 6, Year 1, Griggs sold $6,300 of merchandise to the Hillman Company. On August 8, Year 2, after numerous attempts to collect the account, Griggs determined that the $6,300 account of the Hillman Company was uncollectible.
a. Prepare the journal entry required to record the transactions on August 8.
b. Assuming that the $6,300 is material, explain how the direct write-off method violates the matching principle in this case.

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Definitions:

Non-Heterosexual Behaviors

Actions or expressions of sexuality that do not conform to heterosexual norms, encompassing a spectrum of sexual orientations and identities.

Gay Affirmative Therapy

A therapeutic approach that recognizes and supports the sexual orientation of LGBTQ individuals in a positive manner, counteracting societal stigma and discrimination.

Lesbians

Women who are emotionally, romantically, and/or sexually attracted to other women.

Bisexuals

Individuals who are attracted to both males and females.