Question

On June ​1, 2018​, High Performance Cell Phones sold $ 25 comma 000 of merchandise to Ackerman Trucking Company on account. Ackerman fell on hard times and on July 15 paid only $ 6 comma 500 of the account receivable. After repeated attempts to​ collect, High Performance finally wrote off its accounts receivable from Ackerman on September 5. Six months​ later, March ​5, 2019​, High Performance received Ackerman's check for $ 18 comma 500 with a note apologizing for the late payment. Read the requirementsLOADING.... Requirement 1. Journalize the transactions for High Performance Cell Phones using the direct​ write-off method. Ignore Cost of Goods Sold.

Answer 1

Answer and Explanation:

The journal entries are shown below:

On June 1

Anthony Trucking Company $25,000

To Merchandise $25,000

(Being the sale of merchandise is recorded)

On July 15

Cash Dr $6,000

To Account Receivable $6,000

(Being the cash received is recorded)

On September 5

Bad debt Expense $18,000

To Account Receivable Expense $18,000

(Being the bad debt expense is recorded)

On March 5

Cash $18,000

To Account Receivable $18,000

(Being the cash received is recorded)

Only these journal entries are required