The new bookkeeper at Karlin Construction Company was asked to write off two accounts totaling $1,710 that had been determined to be uncollectible. Accordingly, he debited accounts receivable for $1,710 and credited bad debt expense for the same amount.
Required:
1. Determine what was wrong with the bookkeeper's entry assuming Karlin uses the allowance method.
2. Give both the entry he should have made and the entry required to correct his error.