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Question
was uncollectible, specifically, $2,400 for oakley company and $7,400 for brookes company. prepare the journal entry to write off those two accounts. note: enter debits before credits. data general journal debit credit february 01
Step1: Identify the bad - debt amount
The total uncollectible amount is the sum of the uncollectible amounts for Oakley Company and Brookes Company. So, $2400 + 7400=9800$.
Step2: Determine the journal - entry accounts
When writing off uncollectible accounts using the direct - write off method, we debit Bad Debt Expense and credit Accounts Receivable.
Step3: Record the journal entry
The journal entry on February 01 will have a debit to Bad Debt Expense for $9800 and a credit to Accounts Receivable for $9800.
| Date | General Journal | Debit | Credit |
|---|---|---|---|
| Accounts Receivable - Oakley Company | $2400 | ||
| Accounts Receivable - Brookes Company | $7400 |
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| Date | General Journal | Debit | Credit |
|---|---|---|---|
| Accounts Receivable - Oakley Company | $2400 | ||
| Accounts Receivable - Brookes Company | $7400 |