Using the Allowance method supply the journal entries to bring back the written off Account Receivable and the payment for it for the problem listed below. Can you help me solve this? Direct Write-off Method Bad Debt Expense 50 Accounts Receivable 50 Allowance Method Bad Debt Expense 40 Allowance for Doubtful Accounts 40
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.
Using the Allowance method supply the
Direct Write-off Method
Allowance Method
Bad Debt Expense 40
Allowance for Doubtful Accounts 40
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