Question

On February 1, the company determined that $10,200 in customer accounts was uncollectible; specifically, $2,600 for Oakley Co. and $7,600 for Brookes Co. Prepare the journal entry to write off those two accounts.

Answer 1

Answer:

Explanation:

The journal entry is shown below:

Allowance for Doubtful Accounts A/c Dr $10,200

       To Account receivable A/c - Oakley Co $2,600

       To Account receivable A/c - Brookes Co $7,600

(Being the written off amount is recorded)

Simply we debited the allowance for the doubtful account and credited the account receivable account