Question

22. Texas Roundup uses the direct write-off method in accounting for uncollectible accounts. Year 1 May 28 July 5 Sold merchandise on account to South Shore Motors, $11,000. Received $5,000 from South Shore Motors and wrote off the remainder owed on the sale of May 28 as uncollectible

Answer 1

Question 22)
Answer =
Journal Entries
Date	Account Title and explanation	Debit	Credit
May 28,	Account Receivable	$                  11,000
	To Sales		$                     11,000
July, 05	Cash	$                     5,000
	Bad Debt Expenses	$                     6,000
	To Account Receivable		$                     11,000
Year 2	Account Receivable	$                     6,000
Mar , 15	To Bad Debt Expenses		$                       6,000
Mar , 15	Cash	$                     6,000
	To Account Receivable		$                       6,000
Question 23)
Answer = Option B = A Net Loss
Question 24)
Answer = Working Capital
Question 25)
Answer = Option A = general Journal