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Elden [556K]
3 years ago
14

At the end of 2017, Carpenter Co. has accounts receivable of $778,100 and an allowance for doubtful accounts of $63,200. On Janu

ary 24, 2018, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $7,400.
Prepare the journal entry to record the write-off.
Business
1 answer:
KonstantinChe [14]3 years ago
7 0

Answer:

Dr. Allowance for Doubtful Accounts  $7,400

Cr. Accounts Receivable                       $7,400

Explanation:

A write off eliminates the account receivable balance. It is recorded as the debit to Allowance for Doubtful Accounts because of its credit nature. It reduces the balance of the allowance use it for actual write off. On the other hand it credit the account receivable balance to reduce it as it is debit in nature.

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