Question

Solstice Company determines on October 1 that it cannot collect $60,000 of its accounts receivable from its customer, P. Moore. Apply the direct write-off method to record this loss as of October 1.
Required:
Record the write off an account.
Date General Journal Debit Credit

Answer 1

Answer and Explanation:

The journal entry is shown below:

Bad debts expense Dr $60,000  

        To Accounts receivable $60,000

(Being the written off amount is recorded)

For recording this we debited the bad debt expense as it increased the expenses and credited the account receivable as it reduced the assets

So for correcting posting and recording we passed accurate entry