Question: Direct write-off method (Learning Objective 4) 510 min. Blue Mountain, Inc., uses the direct write-off method to account for bad debts. Record the following transactions

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

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 Nov 8 Dec 10 Provided $4,450 of services to Ken Reeve on account.

Wrote off Ken Reeve’s $4,450 account as uncollectible.

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.

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