A company uses the allowance method to account for uncollectible accounts. During the year, the company has actual bad debts of $23,000. Record the write-off of the uncollectible accounts. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

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Business

Yandel Mccullough

31 July, 04:11

A company uses the allowance method to account for uncollectible accounts. During the year, the company has actual bad debts of $23,000. Record the write-off of the uncollectible accounts. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

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Giuliana Santiago · Answer 1

Given that,

Uses the allowance method to account for uncollectible accounts,

Actual bad debts during the year = $23,000

Therefore, the journal entry is as follows:

Allowance for doubtful accounts Dr. $23,000

To Accounts receivables A/c $23,000

(To record the actual bad debts)