Question

On August 31, 2017, a customer balance for $370 from a prior year was determined to be uncollectable and was written off. Prepare journal entries for each transaction.

Answer 1

To prepare the journal entries for the transaction described:

1. **Write-off of Uncollectible Account:**
- Debit: Bad Debt Expense
- Credit: Accounts Receivable

Journal Entry:
```
Bad Debt Expense $370
Accounts Receivable $370
```

This entry reflects the recognition of the uncollectible account as an expense and reduces the Accounts Receivable balance.

Is there anything else you'd like to know about this transaction or any other accounting-related matter?