At the end of 2016, Nash's Trading Post, LLC has accounts receivable of $635,600 and an allowance for doubtful accounts of $23,140. On January 24, 2017, it is learned that the company's receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $4,210. (a) Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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Business

Woodard

12 January, 01:58

At the end of 2016, Nash's Trading Post, LLC has accounts receivable of $635,600 and an allowance for doubtful accounts of $23,140. On January 24, 2017, it is learned that the company's receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $4,210. (a) Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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Stephanie Hughes · Answer 1

Allowance for Uncollectible Accounts $ 4,210

Accounts Receivable $ 4,210

Explanation:

At the begining the company had this amount on the balance account.

Initial Balance

Accounts Receivable $ 635,600

Allowance for Uncollectible Accounts $ 23,140

When the company authorized the write off, the journal entry recognized the loss and credit the account receivable account.

Until this moment the balance in the Allowance for Uncollectible Accounts was an estimation but now the compay it's recognizing the real loss and then a less accounts receivable balance.

Allowance for Uncollectible Accounts $ 4.210

Accounts Receivable $ 4.210

Final Balance

Accounts Receivable $ 631.390

Allowance for Uncollectible Accounts $ 18.930