Question: Allowance Method versus Direct Write-Off Method On March 10, Mize, Inc., declared an $16,000 account receivable from the Anders Company as uncollectible and wrote off

Allowance Method versus Direct Write-Off Method On March 10, Mize, Inc., declared an $16,000 account receivable from the Anders Company as uncollectible and wrote off the account. On November 18, Mize received an $10,000 payment on the account from Anders. a. Assume that Mize uses the allowance method of handling credit losses. Prepare the journal entries to record the write-off and the subsequent recovery of Ander's account. b. Assume that Mize uses the direct write-off method of handling credit losses. Prepare the journal entries to record the write-off and the subsequent recovery of Ander's account. c. Assume that the payment from Anders arrives on February 5 of the following year rather than on November 18 of the current year. (1) Prepare the journal entries to record the write-off and subsequent recovery of Ander's account under the allowance method. (2) Prepare the journal entries to record the write-off and subsequent recovery of Ander's account under the direct write-off method. a. Date Mar.10 Nov. 18 Nov.18 General Journal Description To write off the Anders Company account. To reinstate the Anders Company account. To record remittance. Debit Credit $ 0 $ 0 0 0 = $ OO 0 $ 0 0 0 $ 0 $ 0 0 0 b. General Journal Date Mar.10 Description Debit Credit = $ 0 $ 0 0 0 To write off the Anders Company account. Nov.18 $ 0 $ 0 0 0 Nov.18 c.Part 1 Date Mar.10 Feb.5 Feb.5 To reinstate the Anders Company account. To record remittance. = $ OO 0 $ 0 0 0 General Journal Description Debit Credit $ 0 $ 0 To write off the Anders Company account. To reinstate the Anders Company account. To record remittance. 0 $ 0 $ 0 0 0 = $ 0 $ 0 OO 0 0 c.Part 2 Date Mar.10 Feb.5 General Journal Description Debit Credit $ 0 $ 0 0 0 To write off the Anders Company account. $ 0 $ 0 0 0 To reinstate the Anders Company account. Feb.5 $ 0 $ 0 0 0 To record remittance

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