Blue Mountain Inc uses the direct write off method to account
Blue Mountain, Inc., uses the direct write-off method to account for bad debts. Record the following transactions that occurred during the year:
May 3 Provided $4,450 of services to Ken Reeve on account.
Nov 8 Wrote off Ken Reeve’s $4,450 account as uncollectible.
Dec 10 Unexpectedly collected $1,000 from Ken Reeve on the account that had been written off. Blue Mountain, Inc., does not expect to collect the remaining balance.

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
Relevant Tutors available to help