
Concept explainers
Journalization: It means record of financial data related to business transactions in a journal in a manner so that debit equals credit. It provides an audit trail to the auditor and a means to analyze the effects of transactions to an organization’s financial health.
Rules of
- Assets: Increase in asset should be debit and decrease should be credit.
- Liabilities: Increase in liabilities should be credit and decrease should be debit.
- Equity: Increase in Equity should be credit and decrease should be debit.
- Expense: Increase in expense should be debit and decrease should be credit.
- Revenue: Increase in revenue should be credit and decrease should be debit.
Accounts receivable: It refers to the amount that is to be received by a company for providing goods and services on credit. It is an asset account.
Write off method for accounts receivable: This is a method of accounting for writing off
To prepare: Journal entry to record the loss of uncollectible accounts receivable through direct write off method for accounts receivable.

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Chapter 7 Solutions
FIN & MANAGERIAL ACCT VOL 2 W/CONNECT
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