Chapter 8 Question 1

Answer all the requirements, please.

lune 1: Sharp Performance Cell Phones sold $20,000 of merchandise to Alright Trucking Company on account. Ignore Cost of Goods Sold. Requirements 1. Journalize the transactions for Sharp Performance Cell Phones using the direct write-off method. Ignore Cost of Goods Sold. 2. What are some limitations that Sharp Performance will encounter when using the direct write-off method