Journal entry to record the write-off of accounts receivable

[Q1] The entity concludes that $1,200 of its accounts receivable cannot be collected in the future, because the customer liquidated the business.
Prepare a journal entry to record this transaction.

[Journal Entry]

  Debit Credit
Allowance for doubtful accounts 1,200  
     Accounts receivable   1,200

Debit: Decrease in allowance for doubtful accounts
Credit: Decrease in accounts receivable
Write-off of accounts receivable decreases the balance of accounts receivable and the corresponding balance of allowance for doubtful accounts.