Answer:
bad debt expense 2,019 debit
allowance for uncollectible amount 2,019 credit
--to record estimated bad debt expense--
allowance for uncollectible amount 337 debit
accounts receivables 337 credit
--to record write-off of P.Park Account--
accounts receivables 337 debit
allowance for uncollectible amount 337 credit
--to reverse write-off of P-Park account--
cash 337 debit
accounts receivables 337 credit
--to record collection of P-Park account--
Explanation:
<em>bad debt expense</em> 673,000 x 0.30% = <em>2,019</em>
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The write off decreases both, the allowance and accounts receivables
As Park pay up his old debt, the entry is reversed. Then we record the collection as normal.
