Question

Solstice Company determines on October 1 that it cannot collect $65,000 of its accounts receivable from its customer, P. Moore. Apply the direct write-off method to record this loss as of October 1.

Required:
Record the write off an account.

Answer 1

Answer:

Dr Bad Debt Expense $65,000

Cr Accoutn Receivable $65,000

Explanation:

Preparation of the journal entry to Record the write off an account.

Based on the information given the appropriate journal entry to Record the write off an account be is :

Dr Bad Debt Expense $65,000

Cr Accoutn Receivable $65,000

(To Record write off an account)