Question: Help for both these questions please? Larry Libbey is a lawyer in Calgary. He uses the direct write-off method to account for uncollectible receivables because

Help for both these questions please?

Help for both these questions please? Larry Libbey is a lawyer in

Larry Libbey is a lawyer in Calgary. He uses the direct write-off method to account for uncollectible receivables because he rarely has delinquent accounts. At May 31, Libbey's accounts receivable totalled $32,000. During June, he earned revenue of $40,000 on account and collected $36,000 on account. He also wrote off uncollectible receivables of $6,000 on June 12. 1. Use the direct write-off method to journalize Libbey's write-off of the uncollectible receivables. 2. What is Libbey's balance of Accounts Receivable at June 30? Does he expect to collect the full amount? Explain. 1. Use the direct write-off method to journalize Libbey's write-off of the uncollectible receivables. (Record debits first, then credits. Explanations are not required.) Journal Entry Date Accounts Debit Credit Jun. 12

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!