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Write Off Accounts Receivable Journal Entry
Credit. Bad debt expense. 000. Accounts receivable. 000. For example, the company XYZ Ltd. decides to write off accounts receivable of Mr. Z that has a balance of USD 300. In this case, the company can make the journal entry of the written-off receivables under the direct write off method as below: Account. Debit.
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Inventory write off journal entry Example
Likewise, in this journal entry, the write-off expense will increase in the same amount of the inventory loss. Inventory write off example. For example, on Mar 5, the company ABC makes the inventory write-off which amounts to $20,000 due to its no longer have value in the market.