Donald , owner of Dallas Company , begin accounting for bad debts expense . Assume that Dallas Company has total revenues of $ 158,000 during 2019 and the Accounts Receivable balance on December 31 2019 , is $ 84,000 Assume that Dallas Company has one account receivable of $ 6,850 determined to be uncollectable , what journal entry made write off the uncollectable account ?
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Donald , owner of Dallas Company , begin accounting for
31 2019 , is $ 84,000
Assume that Dallas Company has one account receivable of $ 6,850 determined to be uncollectable ,
what
made
write off the uncollectable account ?
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