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18 August, 13:38

Shannon Corp. uses the aging method to account for bad debt expense. Shannon determines that a customer account of $10,000 should be written off as uncollectible. The write off of the account will include

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  1. 18 August, 14:08
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    The write off of the account should include a debit to the allowance for uncollectible accounts, and a credit for bad debt expense:

    Account Debit Credit

    Bad Debt Expense $10,000

    Allowance for Uncollectible

    Accounts $10,000

    This is because under the aging method, when an account is actually written-off, it must be charged against the bad debt expense that was forecasted or anticipated earlier.
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