Applying the direct write-off method to account for uncollectibles Shawna Valley is an attorney in Los Angeles. Valley uses the direct write-off method to account for uncollectible receivables.

At April 30, 2018, Valley’s accounts receivable totaled $19,000. During May, she earned revenue of $22,000 on account and collected $15,000 on account. She also wrote off uncollectible receivables of $1,100 on May 31, 2018.

Requirements

1. Use the direct write-off method to journalize Valley’s write-off of the uncollectible receivables.

2. What is Valley’s balance of Accounts Receivable at May 31, 2018?

Please see below for no1

2)Valley’s balance of Accounts Receivable at May 31, 2018= $24,900

Explanation:

1. journal to record  Valley’s write-off of the uncollectible receivables using  the direct write-off method

The direct write off method is a method to account for bad debt that cannot be recovered  from clients Here,  the Bad Debts Expense account is debited  while Accounts Receivable is credited.

Date                  Account                                            Debit         Credit

May 31 2018     Bad debt expense                             $1,100

         Accounts receivable                                                            $1,100

2.Valley’s balance of Accounts Receivable at May 31, 2018

 Accounts and explanation                                 Amount

Beginning balance on Accounts receivable         $19,000

Earned revenue on Account                                  +$22,000

Total amounts receivable                                        $41,000

collected from clients                                              -$15,000

Amount written off                                                    -$1, 100

Ending Balance of Account Receivable                 $24,900

at May 31st 2018

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.