7. Receivables and Investments

Felix has a gross accounts receivable balance of \$18,000. If he uses the direct write-off method and writes off \$1,200 as uncollectible, what is his net accounts receivable after the write-off?

What does it mean when a firm has a days' sales in receivables of 45?

A company has an accounts receivable balance of \$50,000 on June 1. During June, it makes credit sales of \$20,000 and collects \$30,000 from customers. On June 25, it writes off an uncollectible account of \$2,000 using the direct write-off method. What is the accounts receivable balance on June 30?

When is it acceptable to use the direct write-off method for uncollectible accounts?