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Quantum Solutions Company, a computer consulting firm, has decided to write off the $33,550 balance of...

Quantum Solutions Company, a computer consulting firm, has decided to write off the $33,550 balance of an account owed by a customer, Alliance Inc. On March 1, 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. Refer to the Chart of Accounts for exact wording of account titles. (a) On March 1, journalize the entry to record the write-off, assuming that the direct write-off method is used. Refer to the Chart of Accounts for exact wording of account titles. (b) On March 1, journalize the entry to record the write-off, assuming that the allowance method is used. Refer to the Chart of Accounts for exact wording of account titles.

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Answer #1

(a) On March 1, journalize the entry to record the write-off, assuming that the direct write-off method is used

Date accounts & explanation debit credit
Mar 1 Bad debt expense 33550
    Account receivable 33550
(To record amount write off)

(b) On March 1, journalize the entry to record the write-off, assuming that the allowance method is used.

Date accounts & explanation debit credit
Mar 1 Allowance for doubtful accounts 33550
    Account receivable 33550
(To record amount write off)
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