Accouting Test
Journalizing transaction using the direct write- off method verses the allowance method
During July 2015, Mayhew company recorded the following:
1: Sales of $86500 ($70000 on accoynt: $ 16500 for cash)
2: collections on account, $62200
3: Write- offs of uncollectable receivables $3200
4: Recovery of receivavle previously written off, $2000
Requirements:
1: Journalize mayhew's transaction during 2015, assuming Mayhew uses the direct write off method.
2: Journalize mayhew's transacton during july 2015, assuming Mayhew uses the allowance method.