sam mitchell is an attorney in los angeles. mitchell law office uses the direct write - off method to…

sam mitchell is an attorney in los angeles. mitchell law office uses the direct write - off method to account for uncollectible receivables. at april 30, 2025, mitchell law offices accounts receivable totaled $14,000. during may, mitchell law office earned revenue of $16,000 on account and collected $21,000 on account. mitchell law office also wrote off uncollectible receivables of $2,400 on may 31, 2025. requirement 1. use the direct write - off method to journalize mitchell law offices write - off of the uncollectible receivables (record debits first, then credits. select the explanation on the last line of the journal entry table.)
Answer
Explanation:
Step1: Identify the accounts involved
When writing off uncollectible receivables using the direct - write off method, we debit the Bad Debts Expense account (to recognize the expense) and credit the Accounts Receivable account (to remove the uncollectible amount from the receivables).
Step2: Determine the amount
The amount of uncollectible receivables written off is $2,400.
Answer:
| Date | Accounts and Explanation | Debit | Credit |
|---|---|---|---|
| May 31 | Bad Debts Expense | $2,400 | |
| Accounts Receivable | $2,400 | ||
| (To write - off uncollectible receivables) |