90.2K

Verified Solution

Link Copied!

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 $21,500 on an account. Balance Sheet Statement of Cash Flows Assets Liabilities + Stockholders' Equity Mar. 18. Statement of Cash Flows Income Statement March 18. Wrote off the remaining $83,860 owed on account as uncollectible. Balance Sheet Statement of Cash Assets Liabilities + Stockholders' Equity Flows + 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 Statement of Cash Assets Liabilities Stockholders' Equity Flows Aug. 29. Statement of Cash Flows Income Statement Aug. 29. Received $83,860 cash in full payment for the reinstated account. Balance Sheet Statement of Cash Assets Liabilities + Stockholders' Equity Flows Aug. 29. Statement of Cash Flows Income Statement

Answer & Explanation Solved by verified expert

See Answer