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

question 72

Essay

Welles Company uses the direct write-off method of accounting for uncollectible accounts receivable.On December 6,2010,Welles sold $6,300 of merchandise to the Fleming Company.On August 8,2011,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 8,2011
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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Measures or actions taken to decrease the amount of pollutants being released into the environment.

Negative Externality

A cost that affects a party who did not choose to incur that cost, often associated with environmental damage, public health issues, or other societal impacts.

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The act of composing, sending, or reading text messages, emails, or making similar use of the web on a mobile phone while operating a motor vehicle.

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A situation in which resources are allocated in a way that maximizes the net benefit to society.