Direct write-off method (Learning Objective 4) 5–10 min.

Amy Macintosh, an attorney, uses the direct write-off method to account for uncollectible receivables. On September 30, Macintosh’s accounts receivable were $16,500.

During October, she earned service revenue of $21,000 on account and collected

$19,000 from clients on account. She also wrote off uncollectible receivables of

$1,600. What is Macintosh’s balance of Accounts Receivable on October 31? Does she expect to collect this entire amount? Why or why not?

AppendixLO1