Question

sam mitchell is an attorney in los angeles. mitchell law office uses the direct write - off method to account for uncollectible receivables. at april 30, 2025, mitchell law offices accounts receivable totaled $14,000. during may, mitchell law office earned revenue of $10,000 on account and collected $21,000 on account. mitchell law office also wrote off uncollectible receivables of $2,400 on may 31, 2025
read the requirements
requirement 1. use the direct write - off method to journalize mitchell law offices write - off of the uncollectible receivables (record debits first, then credits. select the explanation on the last line of the journal entry table )
requirement 2. what is mitchell law offices balance of accounts receivable at may 31, 2025?
mitchell law offices balance in accounts receivable at may 31, 2025 =

Explanation:

Step1: Calculate the beginning balance of accounts receivable

The beginning balance (April 30, 2025) of accounts receivable is $14,000.

Step2: Add the revenue earned on account

Revenue earned on account in May is $10,000. So the balance becomes \(14000 + 10000=24000\).

Step3: Subtract the amount collected on account

Amount collected on account in May is $21,000. Now the balance is \(24000 - 21000 = 3000\).

Step4: Subtract the uncollectible amount written - off

Uncollectible amount written - off is $2,400. The final balance of accounts receivable is \(3000-2400 = 600\).

Answer:

\(600\)