在做SIM的时候,题目要求make adjusting entries for subsequent events。
Subsequent event:at the end of year xx, a major customer filed for
bankruptcy.
我的理解是应该直接write-off AR,Adjusting entry should be:
Dr: Allowance for doubtful accounts; Cr: AR。
因为既然是需要做adjusting的subsequent events, 那就表明这个客户没法支付AR的可
能在BS date已经存在了,那时就应该已经计提了Allowance for doubtful accounts.
所以等真正破产时,就应该直接write-off这个客户的AR。
但是Wiley给的adjusting entry is:
Dr: Operating Expense; Cr: Allowance for doubtful accounts.
这个是计提坏帐准备的分录,而不是直接write-off。
请问Wiley给的答案正确吗?
Thanks!!!