Roe's Renovations utilizes the direct write-off method of accounting for uncollectible receivables. On September 15 the company is notified by the attorneys for Jacob Marley that Jacob Marley is bankrupt and no cash is expected in the liquidation. Write off the $4,200 of accounts receivable due from Jacob Marley. If an amount box does not require an entry, leave it blank.

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Answer:

Sept. 15

Bad Debt Expense =  $4,200

Accounts Receivable-Jacob Marley = $4,200

Explanation:

Sept. 15

Bad Debt Expense =  $4,200

Accounts Receivable-Jacob Marley = $4,200

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