Help please.Thanks ETHICS CASE Preston Enterprises uses the direct write-off met

Question

Help please.Thanks

ETHICS CASE Preston Enterprises uses the direct write-off method of accounting for uncollectible accounts. On October 12, a very large account was written off. The amount was subse- quently recovered on December 15. Ray Preston, the owner of the company, instructed the accountant to not make a journal entry for the recovery and to hold the check in his desk until after the first of the year "for tax purposes. 1. If you were the accountant, what would you think of Preston's request? 2. If the Deember 15 entry is not made ow wili fct Preston's curent year financial statements? . As sume the amount of the charge-off and the subsequent recovery was $10,000. Prepare the proper journal entries for October 12 and December 15.

Explanation / Answer

3)profit and loss a/c. Dr 10000

To debtors a/c. 10000

Bank a/c. Dr 10000

To profit and loss a/c. 10000

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.