Accounting · Receivables and Bad Debts
At its accounting year end of 31 October 20X3, Neptune Co decided to write off irrecoverable debts of $673 and also to reduce the allowance for receivables by $184. What accounting entries should Neptune Co make to update the general ledger to reflect these circumstances?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Debit Irrecoverable debts $489, Allowance for receivables $184; Credit Trade receivables $673✓
- 2Debit Irrecoverable debts $857; Credit Trade receivables $673, Allowance for receivables $160
- 3Debit Irrecoverable debts $184, Allowance for receivables $489; Credit Trade receivables $673
- 4Debit Trade receivables $673; Credit Irrecoverable debts $489, Allowance for receivables $184
Correct answer
Debit Irrecoverable debts $489, Allowance for receivables $184; Credit Trade receivables $673
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