Question

Quantum Technologies, a computer consulting firm, has decided to write off the $31,875 balance of an account owed by a customer. Illustrate the effects on the accounts and financial statements of recording the write-off based on the following assumptions:

If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts.

Writing Off Accounts Recelvable Quantum Technologies, a computer consulting firm, has decided to write off the $31,875 balance of an account owed by a customer. Illustrate the effects on the accounts and financial statements of recording the write-off based on the following assumptions: If no account or activity is affected, select "No effect from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outfiows as negative amounts. (a) Assuming that the direct write-off method is used: Balance Sheet Statement of Cash Assets Liabilities +Stockholders' Equity Flows Statement of Cash Flows Income Statement (b) Assuming that the allowance method is used Balance Sheet Statement of Cash Flows Assets Liabilities + Stockholders' Equity Statement t of Cash Flows Income Statement

Answer 1

Note: The above solution is final increase or decrease. I am unaware what is there in dropdown lists. So if your dropdown lists doesn't match with this, please share the dropdown list in comment section.Thank you.