The new bookkeeper at Karlin Construction Company was asked to write off two accounts totaling $1,710 that had been determined to be uncollectible Accordingly, he debited accounts receivable for $1,710 and credited bad debt expense for the same amount Required 1 Determine what was wrong with the bo...

1 The new bookkeeper did not make the correct entry The entry that the bookkeeper made i ...

The new bookkeeper at Karlin Construction Company was asked to write off two accounts totaling $1,710 that

Question:

The new bookkeeper at Karlin Construction Company was asked to write off two accounts totaling $1,710 that had been determined to be uncollectible. Accordingly, he debited for $1,710 and credited bad debt expense for the same amount.

Required:
1. Determine what was wrong with the bookkeeper's entry assuming Karlin uses the allowance method.
2. Give both the entry he should have made and the entry required to correct his error.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...