Uncollectible Accounts, Using Direct Write-Off Method Illustrate the effects on the accounts and financial statements of the following transactions in the accounts of Valley Care & Supplies Co., a local hospital supply company that uses the direct write-off method of accounting for uncollectible receivables: If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. March 18. Received $15,875 on an account. Balance Sheet Assets Liabilities + Stockholders' Equity Mar. 18 Statement of Cash Flows Income Statement March 18. Wrote off the remaining $70,795 owed on account as uncollectible. Balance Sheet Assets Liabilities Stockholders' Equity Check My Work 3 more Check My Work uses remaining. Previous Next Balance Sheet Assets Liabilities Stockholders Equity Mar. 18 Statement of Cash Flows Income Statement Aug. 29. Reinstated the account that had been written off on March 18. (Do not record the collection of cash yet.) Balance Sheet Assets Liabilities + Stockholders' Equity Aug. 29 Statement of Cash Flows Income Statement Aug, 29. Received $70,795 cash in full payment for the reinstated account Balance Sheet Starlich dere! dropdown Aug 29. Received $70,795 cash in full payment for the reinstated account. Balance Sheet Assets Liabilities + Stackholders' Equity Aug. 29 Statement of Cash Flows Income Statement Check My Work 3 more Check My Work uses remaining