The new bookkeeper at Karlin Construction Company was asked to write off two accounts totaling $1,650...

 

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The new bookkeeper at Karlin Construction Company was asked to write off two accounts totaling $1,650 that had been determined to be uncollectible. Accordingly, he debited Accounts Receivable for $1,650 and credited Bad Debt Expense for the same amount. Required: If an amount box does not require an entry, leave it blank. 1. Give both the entry he should have made and the entry required to correct his error. One option is to reverse the incorrect entry and make the correct entry as follows: Reversal of incorrect entry: (Reverse error) Make the correct entry: 88 Record write-off of defaulted account The other option is to fix the error Fix the error: 88 (Write off defaulted account and correct error) 000 The new bookkeeper at Karlin Construction Company was asked to write off two accounts totaling $1,650 that had been determined to be uncollectible. Accordingly, he debited Accounts Receivable for $1,650 and credited Bad Debt Expense for the same amount. Required: If an amount box does not require an entry, leave it blank. 1. Give both the entry he should have made and the entry required to correct his error. One option is to reverse the incorrect entry and make the correct entry as follows: Reversal of incorrect entry: (Reverse error) Make the correct entry: 88 Record write-off of defaulted account The other option is to fix the error Fix the error: 88 (Write off defaulted account and correct error) 000

Answer rating: 100% (QA)

Answer The new bookkeeper at Karlin Construction Company made an e... View the full answer