Creative Solutions Company, a computer consulting firm, has decided to write off the $15,220 balance of an account owed by a customer, Wil Treadwell. Question Content Area a. Journalize the entry to record the write-off, assuming that the direct write-off method is used. If an amount box does not require an entry, leave it blank. blank Account Debit Credit blank Bad Debt Expense Bad Debt Expense Accounts Receivable-Wil Treadwell Accounts Receivable-Wil Treadwell Feedback Area Feedback Remember that under the direct write-off method, Bad Debt Expense is not recorded until the customer's account is determined to be worthless. Question Content Area b. Journalize the entry to record the write-off, assuming that the allowance method is used. If an amount box does not require an entry, leave it blank. blank Account Debit Credit blank Allowance for Doubtful Accounts Allowance for Doubtful Accounts
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.
Creative Solutions Company, a computer consulting firm, has decided to write off the $15,220 balance of an account owed by a customer, Wil Treadwell.
Question Content Area
a.
| blank | Account | Debit | Credit |
|---|---|---|---|
| blank |
|
Bad Debt Expense | |
|
|
Accounts Receivable-Wil Treadwell |
Feedback Area
Remember that under the direct write-off method, Bad Debt Expense is not recorded until the customer's account is determined to be worthless.
Question Content Area
b. Journalize the entry to record the write-off, assuming that the allowance method is used. If an amount box does not require an entry, leave it blank.
| blank | Account | Debit | Credit |
|---|---|---|---|
| blank |
|
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts |
|
|
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
