Question

Sharon Silver is an attorney in Los Angeles. Silver uses the direct write-off method to account for uncollectible receivables. At April 30, 2018, Silver's accounts receivable totaled $16,000. During May, she earned revenue of $18,000 on account and collected $17,000 on account. She also wrote off uncollectible receivables of $1,980 on May 31, 2018. Read the requirements. Requirement 1. Use the direct write-off method to journalize Silver's write-off of the uncollectible receivables. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit May 31 i Requirements 1. Use the direct write-off method to journalize Silver's write-off of the uncollectible receivables. 2. What is Silver's balance of Accounts Receivable at May 31, 2018? Choose fror Print [ Done] 1 part I remaining Clear All Check Answer Check Answer

Answer 1

Requirement 1

Date	Accounts and explanation	Debit	Credit
May-31	Bad debts expense	$         1,980.00
	Accounts receivable		$       1,980.00
	(To record bad debts expense)

Requirement 2

Balance of receivable on May 31 = $15,020

Working

Accounts receivable, Beginning balance	$       16,000.00
Add: Revenue earned in may	$       18,000.00
Less: Cash collected from receivable	$    (17,000.00)
Less: Bad debts accounts written off	$       (1,980.00)
Accounts receivable, May 31	$       15,020.00