e the accounting equation to show how Jack​’s would write off the account using​ (a) the direct​ write-off method and​ (b) the allowance method for bad debts.

Jacks Upholstery has determined that
Star
​Builders’ accounts receivable balance of
$6,000 is uncollectible. Use the accounting equation to show how
Jack
​’s would write off the account using
​ (a) the direct​ write-off method and​ (b) the allowance method for bad debts.

​(a) First record in the accounting equation how

Jack
​’s Upholstery would write off the account using the direct
​ write-off method.
​(Use parentheses or a minus sign when decreasing components or entering increases to contra accounts. Leave unused cells​ blank.)
   
    

Shareholders’ Equity

Assets

=

Liabilities

+

Contributed Capital

+

Retained Earnings

$

Account

$

Account

$

Account

$

Account

   
   

​(b) Now record in the accounting equation how

Jacks Upholstery would write off the account using the allowance method for bad debts.
​(Use parentheses or a minus sign when decreasing components or entering increases to contra accounts. Leave unused cells​ blank.)
    
   

Shareholders’ Equity

Assets

=

Liabilities

+

Contributed Capital

+

Retained Earnings

$

Account

$

Account

$

Account

$

Account

.     
   

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