Juflies
May 20, 2008, 04:00 PM
Allowance for doubtful accounts- $5000 (debit)
Bad Debt Expense- $700.00 (debit)
Accounts Receivable-$5,700.00
morgaine300
May 22, 2008, 03:49 PM
You Got It Right.....
Right based on what info??
Juflies, no one can actually check your entry without knowing what the entry is supposed to be for. Under the allowance method, the adjusting entry would be to dr the expense and cr the allowance account. To write off an account, you would dr the allowance account and cr the receivables. Under the direct method, to write off an account, you would dr the expense and cr the receivables. You are making an entry that is combining all this together and I don't know what you're attempting to do.
What is the original info that you have to work with, to come up with this entry?