Journalizing transactions using the direct write-off method

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Reference no: EM131819362

Question: Journalizing transactions using the direct write-off method versus the allowance method During August 2016, Ritter Company recorded the following:

• Sales of $62,100 ($55,000 on account; $7,100 for cash). Ignore Cost of Goods Sold.

• Collections on account, $37,800.

• Write-offs of uncollectible receivables, $1,690.

• Recovery of receivable previously written off, $500.

Requirements: 1. Journalize Ritter's transactions during August 2016, assuming Ritter uses the direct write-off method.

2. Journalize Ritter's transactions during August 2016, assuming Ritter uses the allowance method.

Reference no: EM131819362

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