On June 1, 2025, Wireless Mobile Devices sold $23,000 of merchandise to Antonio Trucking Company on account. Antonio Trucking Company fell on hard times and on July 15 paid only $8,000 of the account receivable. After repeated attempts to collect, Wireless Mobile Devices finally wrote off its accounts receivable from Antonio Trucking Company on September 5. Six months later, March 5, 2026, Wireless Mobile Devices received Antonio Trucking Company’s check for $15,000 with a note apologizing for the late payment. 

Requirements 

1. Journalize the transactions for Wireless Mobile Devices using the direct write-off method. Ignore Cost of Goods Sold. 

2. What are some limitations that Wireless Mobile Devices will encounter when using the direct write-off method?