You have found out that Argus has gone bankrupt. Using the direct write-off method, you are to write him off on July 31st. Do the appropriate journal entry and post to correct ledgers. It’s also the end of the month, so you are to compute the depreciation on the asset purchased on the 2nd. Use the straight-line method and take only one month’s depreciation (zero residual value). Do the appropriate journal entry and post to correct ledgers.
