Sherman Peterson is an attorney in Los Angeles. Peterson uses the direct write-off method to account for uncollectible receivables. At January 31, 2014, Peterson’s accounts receivable totaled $ 15,000. During February, he earned revenue of $ 18,000 on account and collected $ 19,000 on account. He also wrote off uncollectible receivables of $ 1,800 on February 28, 2014.

Requirements

1. Use the direct write- off method to journalize Peterson’s write-off of the uncollectible receivables.

2. What is Peterson’s balance of Accounts Receivable at February 28, 2014?