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    Jeryl Raut
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    The write-off of a bad account debits the Allowance for Doubtful Accounts and credits Accounts Receivable, affecting only balance sheet accounts. No expense or loss is reported on the income statement because the write-off was already estimated in prior adjustments for bad debts expense.

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    The write-off of a bad account debits the Allowance for Doubtful Accounts and credits Accounts Receivable, affecting only balance sheet accounts. No expense or loss is reported on the income statement because the write-off was already estimated in prior adjustments for bad debts expense.

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    4 views1 page

    Untitled

    Uploaded by

    Jeryl Raut
    The write-off of a bad account debits the Allowance for Doubtful Accounts and credits Accounts Receivable, affecting only balance sheet accounts. No expense or loss is reported on the income statement because the write-off was already estimated in prior adjustments for bad debts expense.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    The entry to 

    write off a bad account affects only balance sheet accounts: a debit to Allowance


    for Doubtful Accounts and a credit to Accounts Receivable. No expense or loss is reported on
    the income statement because this write-off is "covered" under the earlier adjusting entries for
    estimated bad debts expense.

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