Applying the direct write-off method to account for uncollectible Gate City Cycles had trouble collecting its account receivable from Shawna Brown. On June 19, 2016, Gate City finally wrote off...

Applying the direct write-off method to account for uncollectible

Gate City Cycles had trouble collecting its account receivable from Shawna Brown. On June 19, 2016, Gate City finally wrote off Brown’s $700 account receivable. On December 31, Brown sent a $700 check to Gate City.

At January 31, 2016, Knoll’s accounts receivable totaled $18,000. During February, she earned revenue of $21,000 on account and collected $23,000 on account. She also wrote off uncollectible receivables of $1,050 on February 29, 2016.

Requirements

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


2. What is Knoll’s balance of Accounts Receivable at February 29, 2016?