Harrisburg Company, which began business in early 20X7, reported $40,000 of accounts receivable on the December 31,

Question:

Harrisburg Company, which began business in early 20X7, reported $40,000 of on the December 31, 20X7, balance sheet. Included in this amount was $550 for a sale made to Tom Mattingly in July. On January 4, 20X8, the company learned that mattingly had filed for personal bankruptcy. Harrisburg uses the direct write-off method to account for uncollectible.
A. Prepare the journal entry needed to write off Mattingly's account.
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...