96.8k views
1 vote
At the end of 2020, Concord Company has accounts receivable of $784,000 and an allowance for doubtful accounts of $39,200. On January 16, 2021, Concord Company determined that its receivable from Ramirez Company of $5,880 will not be collected, and management authorized its write-off.

Prepare the journal entry for Concord Company to write off the Ramirez receivable.

1 Answer

0 votes

Answer:

Journal Entry

Dr. Allowance for doubtful accounts $5,880

Cr. Account Receivable $5,880

Step-by-step explanation:

When a receivable of the business is considered to be non-collectible from a customer, it is written off from the accounts. This event will decrease the account receivable balance and allowance for the doubtful accounts too. a Debit entry in the Allowance for doubtful account and a credit entry in accounts receivable is made to incorporate the effect of this transaction.

User Mohamed Amin
by
7.8k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.