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Plumbing Unlimited Uses the Direct Write-Off Method for Uncollectible Accounts

Question 108

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Plumbing Unlimited uses the direct write-off method for uncollectible accounts. Record the following transactions in general journal form.
Aug 15 Sold merchandise on account to Maureen Townsend for $3,500. The cost to
Plumbing Unlimited for the merchandise is $1,000.
Sept 15 Received $1,200 cash payment from Maureen Townsend on her account.
Sept 30 Received $800 cash payment from Maureen Townsend on her account.
Oct 15 Wrote off the balance due on Maureen's account as uncollectible.

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