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3 years ago

Adidea Corp. estimates that $5,670 of its accounts receivables are uncollectible. How will the company record the transaction?

Mathematics

1 answer:

sergiy2304 [10]3 years ago

4 0

Answer:

The transaction will be recorded by the company as :

DR : Non-collectibles $5670

CR : Accounts receivable $5670

Step-by-step explanation:

Amount of money estimated = $5670

The amount which is non-collectible is recorded as a DEBIT transaction by the company because the amount in the non-collectible account can't be received by the company.

But, the amount in the receivables is the amount which is available for receiving and can be received by the company. So, receivable transaction is marked as CREDIT by the company.

Thus, the transaction will be recorded by the company as :

DR : Non-collectibles $5670

CR : Accounts receivable $5670

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