Solstice Company determines on October 1 that it cannot collect $61,000 of its accounts recelvable from its customer, P. Moore. Apply the direct write-off method to record this loss as of October 1. View transaction list Journal entry worksheet 1 Record the write off an account. Note: Enter debits before credits. Date General Journal Debit Credit Oct 01 Record entry Clear entry View general journal
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.
Solstice Company determines on October 1 that it cannot collect $61,000 of its
Record the write off an account.
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