Lee and Chen Distributors uses the direct write-off method
Question and Solution
Lee and Chen Distributors uses the direct write-off method in accounting for uncollectible accounts. 20-1 Feb. 16 Sold merchandise on account to Biggs and Daughters, $16,000. Mar. 23 Sold merchandise on account to Lloyd Place, $12,800. June 8 Received $12,000 from Biggs and Daughters and wrote off the remainder owed on the sale of February 16 as uncollectible. Sept. 27 Received $7,000 from Lloyd Place and wrote off the remainder owed on the sale of March 23 as uncollectible. Nov. 18 Reinstated the account of Biggs and Daughters, which had been written off on June 8, and received $4,000 cash in full settlement. 20-2 Jan. 11 Reinstated the account of Lloyd Place, which had been written off on September 27 of the previous year, and received $5,800 cash in full settlement. REQUIRED Record these transactions in general journal form.