Solution-Prepare the journal entry to record the write-off

Prepare the journal entry to record the write-off

Reference no: EM132752955

Question: MaLi Ltd follows the Allowance method for valuing its receivables. During the year, $11,500 of accounts receivable-the figure includes GST-were written off. The GST portion is recoverable from Inland Revenue (the government).

a) Prepare the journal entry to record the write-off

Ignore GST. At the beginning of its financial year, Weez Ltd reported normal balances of $100,000 and $2,000 for Accounts Receivable and Allowance for Doubtful Accounts, respectively. During the year, credit sales were $900,000, sales discounts were $10,000, cash received from customers was $850,000, total write-offs were $5,000, and write-off recoveries were $3,000.

b) Using the "T" account format, enter the beginning balances of Accounts Receivable and Allowance for Doubtful Accounts, post the above events, and calculate the ending balance of each account. Cross-referencing is not required.

Reference no: EM132752955

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Prepare the journal entry to record the write-off

Reference no: EM132752955

Reference no: EM132752955

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