Question

Entries to write off accounts receivable Instructions Creative Solutions Company, a computer consulting firm, has decided to write off the $11,750 balance of an account owed by a customer wiedeel On December 31, journalire the entry to record the write-off, assuming that all the direct we method is used and the scended Refer to the Chart of Account bra Chart of Account CHART OF ACCOUNTS Creative Solutions Company General Ledger ASSETS REVENUE 110 Cash 410 Sales 610 interest Revenue 111 Petty Cash 121 Accounts Recevable We Treadwel 129 Alowance for Doubtful Accounts 131 Interest Receivable 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation Store Equipment 193 Office Equipment 194 Accumulated Depreciation Office Equipment EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 524 Repairs Expense 529 Selling Expenses 530 Office Salaries Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Office Supplies Expense 535 Store Supplies Expense 536 Credit Card Expense 537 Cash Short and Over 538 Bad Debt Expense 539 Miscellaneous Expense 710 Interest Expense LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary

Answer 1

No.	Date	Accounts titles and Explanation	Debit (in $)	Credit (in $)
(a)	Dec. 31	Bad Debts expense	$ 11,750
		Accounts Receivable - Will Treadwell		$ 11,750
		(To record the Writeoff assuming direct write-off)
(b)	Dec. 31	Allowance for Doubtful Accounts	$ 11,750
		Accounts Receivable - Will Treadwell		$ 11,750
		(To record the Writeoff assuming allowance method)