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

question 142

Essay

Welles Company uses the direct write-off method of accounting for uncollectible accounts receivable.On December 6,2013,Welles sold $6,300 of merchandise to the Fleming Company.On August 8,2014,after numerous attempts to collect the account,Welles determined that the $6,300 account of the Fleming Company was uncollectible.
a.Prepare the general journal entries required to record the transactions on August 8,2014.
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:

Ineffective Leaders

Leaders lacking the ability to inspire followers, achieve goals, or effectively manage resources and tasks.

Servant Leaders

Leaders who prioritize the growth, well-being, and development of their team members above their own self-interest, focusing on serving others.

Empower

To give someone the authority or power to do something; enabling individuals or teams to take decisions and actions independently.

Authority

The power or right to give orders, make decisions, and enforce obedience.