On January 16, Half Circle, Inc. sold $5,000 of merchandise to Arnold, on account. Half Circle could not collect cash from Arnold and wrote off the account. Prepare a journal entry to record the write-off, assuming Half Circle uses the allowance method. Omit explanation.

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The Answer of On January 16, Half Circle, Inc. sold $5,000 of merchandise to Arnold, on account. Half Circle could not collect cash from Arnold and wrote off the account. Prepare a journal entry to record the write-off, assuming Half Circle uses the allowance method. Omit explanation.