EX 9-5 Entries to write off accounts receivable

Acropolis Company, a computer consulting firm, has decided to write off the $12,950 balance
of an account owed by a customer, Aaron Guzman. Journalize the entry to record the write-off,
assuming that (a) the direct write-off method is used and (b) the allowance method is used.

Answer:
a. Bad Debt Expense......................................................... 12,950  
                       Accounts Receivable—Aaron Guzman..................  12,950  

b. Allowance for Doubtful Accounts................................ 12,950  
                        Accounts Receivable—Aaron Guzman..................  12,950

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