EX 9-5 Entries to write off accounts receivable

Creative Solutions Company, a computer consulting firm, has decided to write off the $11,750 balance of an account owed by a customer, Wil Treadwell. Journalize the entry to record the writeoff, assuming that (a) the direct write-off method is used and (b) the allowance method is used.


Answer:

a.
 Bad Debt Expense 11,750
Accounts Receivable—Wil Treadwell 11,750
b.
 Allowance for Doubtful Accounts 11,750
Accounts Receivable—Wil Treadwell 11,750