Sad Clown Pajamas is an Internet-based wholesaler.The customer account manager at Sad Clown received a call from the manager at Callow Youth Clothing.The firm was entering bankruptcy liquidation and it was unlikely that they would be able to pay the outstanding balance on their account.The account manager decided to write off the account,so he issued a

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The best choice in this scenario would be to issue a credit memo. A credit memo is a document that is issued to adjust or cancel an outstanding balance on a customer's account. By issuing a credit memo for the outstanding balance, Sad Clown Pajamas would essentially be writing off the debt owed by Callow Youth Clothing.

Sad Clown Pajamas Is an Internet-Based Wholesaler