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nikklg [1K]
3 years ago
9

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

Business
1 answer:
Anton [14]3 years ago
4 0

Answer:

allowance for doubtful accounts 4,245 debit

                     accounts receivables            4,245 credit

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

Explanation:

<em>Prepare the journal entry to record the write-off. </em>

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

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