Question: In this exercise we continue our accounting for Lydon s Yard

In this exercise, we continue our accounting for Lydon’s Yard Care, Inc., from Chapter 5. Refer to the Continuing Exercise from Chapter 5. On July 15, Lydon’s Yard Care, Inc. sold 30 plants to Jay Benson for $300 on account. On August 18, Lydon’s Yard Care, Inc., received $200 on account from Jay Benson related to his May 15 purchase. On October 12, Jay notified Lydon’s Yard Care, Inc., that he was filing bankruptcy and that he would not be able to pay the remaining amount owed.

1. Journalize the entry to record the payment from Jay and to record the write-off of Jay’s uncollectible account. Assume that Lydon’s Yard Care, Inc., uses the direct write-off method to account for uncollectible accounts.

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