Correcting an Erroneous Write-Off The new bookkeeper at Karlin Construction Company was asked to write off two accounts totaling $1,800 that had been determined to be uncollectible. Accordingly, he debited Accounts Receivable for $1,800 and credited Bad Debt Expense for the same amount. Required: If an amount box does not require an entry, leave it blank. Question Content Area 1. Give both the entry he should have made and the entry required to correct his error. One option is to reverse the incorrect entry and make the correct entry as follows: Reversal of incorrect entry: - Select - - Select - - Select - - Select - (Reverse error) Question Content Area Make the correct entry: - Select - - Select - - Select - - Select - Record write-off of defaulted account Question Content Area The other option is to fix the error. Fix the error: - Select - - Select - - Select - - Select - - Select - - Select - (Write off defaulted account and correct error)
Correcting an Erroneous Write-Off The new bookkeeper at Karlin Construction Company was asked to write off two accounts totaling $1,800 that had been determined to be uncollectible. Accordingly, he debited Accounts Receivable for $1,800 and credited Bad Debt Expense for the same amount. Required: If an amount box does not require an entry, leave it blank. Question Content Area 1. Give both the entry he should have made and the entry required to correct his error. One option is to reverse the incorrect entry and make the correct entry as follows: Reversal of incorrect entry: - Select - - Select - - Select - - Select - (Reverse error) Question Content Area Make the correct entry: - Select - - Select - - Select - - Select - Record write-off of defaulted account Question Content Area The other option is to fix the error. Fix the error: - Select - - Select - - Select - - Select - - Select - - Select - (Write off defaulted account and correct error)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Correcting an Erroneous Write-Off
The new bookkeeper at Karlin Construction Company was asked to write off two accounts totaling $1,800 that had been determined to be uncollectible. Accordingly, he debited
Required:
If an amount box does not require an entry, leave it blank.
Question Content Area
1. Give both the entry he should have made and the entry required to correct his error.
One option is to reverse the incorrect entry and make the correct entry as follows:
Reversal of incorrect entry:
|
|
- Select - | - Select - | |
|
|
- Select - | - Select - | |
| (Reverse error) |
Question Content Area
Make the correct entry:
|
|
- Select - | - Select - | |
|
|
- Select - | - Select - | |
| Record write-off of defaulted account |
Question Content Area
The other option is to fix the error.
Fix the error:
|
|
- Select - | - Select - | |
|
|
- Select - | - Select - | |
|
|
- Select - | - Select - | |
| (Write off defaulted account and correct error) |
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A journal entry is a form of accounting entry that is used to report a business transaction in a company's accounting records.
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