Refer to RE6 5 At the end of the first quarter of 2017, McKinney Co reevaluates its receivables McKinneys management decides that $8,500 due from Mangold Corporation will not be collectible This amount was previously included in the allowance account Prepare the journal entry to record the write of...

Refer to RE6-5. At the end of the first quarter of 2017, McKinney & Co. reevaluates its

Question:

Refer to RE6-5. At the end of the first quarter of 2017, McKinney & Co. reevaluates its receivables. McKinney’s management decides that $8,500 due from Mangold will not be collectible. This amount was previously included in the allowance account. Prepare the journal entry to record the write-off for McKinney.
RE6-5
McKinney & Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made credit sales of $1,500,000 in 2016. McKinney estimates 2.5% of its sales will be uncollectible. Prepare the journal entry to record bad debt expense for McKinney at the end of 2016.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...