Question

Solstice Company determines on October 1 that it cannot collect $50,000 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.

Date General Journal Debit Credit
Oct 01

Answer 1

The journal entry is shown below:

Step-by-step explanation:

According to the scenario, the Journal entry for the given data are as follows:

Journal entry.

Date General Journal Debit Credit

Oct.01 Bad debts expense $50,000

Accounts receivable of Cust. P. Moore $50,000

( Being bad debt expense is being recorded)