[Anonymous]

What does “writing off” mean? Does that mean accounts you previously thought were collectible are now confirmed to be uncollectible, or does it mean those accounts are now collectible?

[Anonymous]

It means removing the account balance from your accounts receivable because you confirmed that the account is uncollectible.

[umkcfuturecpa]

I think the JE helps to make it more clear:

DR: Allow for Doubtful Accts

CR: AR

You've found a specific account/amount that for whatever reason you've confirmed will be noncollectable, so you can officially write it off. You're taking it out of both the allowance and the AR accounts.

REG - 87 (Becker)
AUD - 96 (Becker & Ninja MCQs)
FAR - 85 (Becker, Ninja MCQs, Audio and Blitz)
BEC - Last one! Waiting on score release 11/24!

Remember: a journey of a thousand miles begins with a single step

[Author]

Replies