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E8-21 Journalizing transactions using the direct write-off method versus the Ar During August 2018, Lima Company recorded the
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Answer #1

Answer 1.

Date Accounts Titles & Explanation Debit Credit
Aug-18 Accounts Receivable 122,000
Cash 11,300
Sales Revenue 133,300
(To record sales)
Aug-18 Cash 106,400
Accounts Receivable 106,400
(To record collection on account)
Aug-18 Bad Debts Expense 990
Accounts Receivable 990
(To record write off uncollectible receivables)
Aug-18 Accounts Receivable 800
Bad Debts Expense 800
(To record reinstated previously write off receivables)
Aug-18 Cash 800
Accounts Receivable 800
(To record collection on account)

Answer 2.

Date Accounts Titles & Explanation Debit Credit
Aug-18 Accounts Receivable 122,000
Cash 11,300
Sales Revenue 133,300
(To record sales)
Aug-18 Cash 106,400
Accounts Receivable 106,400
(To record collection on account)
Aug-18 Allowance for Bad Debts 990
Accounts Receivable 990
(To record write off uncollectible receivables)
Aug-18 Accounts Receivable 800
Allowance for Bad Debts 800
(To record reinstated previously write off receivables)
Aug-18 Cash 800
Accounts Receivable 800
(To record collection on account)
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