Answer:
Explanation: from the above question, the inability of management to collect any outstanding debt from a customer after a particular time frame is termed a bad debt and it can be written off the books of the company.
From the question above, management determined that it will not be able to collect the $1,200 owed to it by one of its customers.
To write this amount off the books,
Debit : Account receivable $1,200
Credit: bad debit written off $1,200
The bad debt written off is an expense account where the amount uncollectible is expensed from the books of the company.
