At the end of 2024, Blue Depot has accounts receivable of $141,000 and an allowance for doubtful accounts with a $5,400 cred balance. On January 18, 2025, the company's $800 receivable from JaxCo is deemed uncollectible and written off. a. Prepare the journal entry to record the write-off. (List debit entry before credit entry. Credit account titles are automatically indent when the amount is entered. Do not indent manually.)
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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