Question

At the end of 2016, Sunland Company has accounts receivable of $653,700 and an allowance for doubtful accounts of $24,200.

Answer 1

Answer:

allowance for doubtful accounts 4,245 debit

                     accounts receivables            4,245 credit

--to record write-off of Madonna Inc account--

Explanation:

Prepare the journal entry to record the write-off.

To record the write-off we will decrease both, the allowance and the accounts receivable for the amount we consider uncollectible. Under allowance method the company never uses bad debt expense at write-off it only does at year-end adjustment