Sorter Co journal entries write off accounts receivable
At the end of 2010 Sorter Company has accounts receivable of $900,000 and an allowance for doubtful accounts of $40,000. On January 16, 2011, Sorter Company determined that its receivable from Ordonez Company of $8,000 will not be collected, and management authorized its write-off. Prepare the journal entry for Sorter Company to write off the Ordonez receivable. When writing the journal entry use Dr. for debit and Cr. for credit.
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AR..................................................................$900,000.00
less: allowance for doubtful accounts........ $(40,000.00)
net ...
Solution Summary
Entry and explanation provided
$2.19