{"id":"acct-writeoff-entry-allowance-lines","audience":"accounting","category":"finance-work","track":"finance","technique":"verification","level":"intermediate","title":"Record a write-off against the allowance and show the balances","free":false,"task":"You're recording a customer write-off that has been approved. Write a prompt for plain text with lines starting \"Entry:\", then two journal lines in the form \"Dr 1250 Allowance 1,800\", then \"AR after:\", \"Allowance after:\" and \"Income effect:\". The company uses the allowance method. Show the math on the balances. Don't suggest an expense entry. Under 80 words. No bullets or numbering.","materialLabel":"Approved write-off and balances (attached to your prompt automatically)","material":"WRITE-OFF ENTRY - approved by the Controller on Nov 6, 2026\n\nCustomer: Brightwell Dental. Approved write-off: $1,800 of invoice INV-2201 (customer closed the practice).\n\nBalances before the entry:\nAccounts Receivable (1200): $193,000\nAllowance for Doubtful Accounts (1250): $7,300 credit balance\n\nCompany policy: the allowance method is used. An approved write-off reduces receivables and the allowance; no expense is recorded at write-off because the expense was recorded when the allowance was set up.\n\nAccounts: 1200 Accounts Receivable; 1250 Allowance for Doubtful Accounts; 6810 Bad Debt Expense.\n\nNote: the preparer asked if the write-off should be 'expensed now to be safe'. Under the allowance method it should not.","rules":[{"type":"plainText"},{"type":"maxWords","max":80},{"type":"maxBullets","max":0}],"promptHints":[{"label":"Names the lines","patterns":["entry:","ar after","allowance after","income effect"]},{"label":"Gives the journal form","patterns":["dr 1250","cr 1200"]},{"label":"Shows the balance math","patterns":["\\$193,000 - \\$1,800","\\$7,300 - \\$1,800"]},{"label":"Bans an expense entry","patterns":["(do not|don'?t).*(expense|6810)"]},{"label":"Caps length","patterns":["\\d+\\s*words","plain"]}],"mistakes":[{"title":"Debiting bad debt expense","why":"The AI books the write-off to 6810.","fix":"Add: \"Allowance method: debit the allowance, not expense. Do not mention 6810.\"","checks":["r0","r2"]},{"title":"Reducing only AR","why":"The AI doesn't reduce the allowance.","fix":"Say: \"Allowance after: $7,300 - $1,800 = $5,500.\"","checks":["r1"]},{"title":"Wrong income effect","why":"The AI says net income falls by $1,800.","fix":"Add: \"Income effect: none at write-off.\"","checks":["r2"]},{"title":"Markdown extras","why":"The AI adds bold labels, headings and a closing note.","fix":"Say: \"Plain text, no bold. Output only the lines asked for.\"","checks":["plainText","maxBullets"]},{"title":"Trusting the AI to count words","why":"AI is bad at counting and runs past word limits.","fix":"Ask for fewer words than the real cap and keep each line short.","checks":["maxWords"]}],"hint":"Under the allowance method a write-off hits two balance sheet accounts. Give the entry form, the balances and the ban.","rubricLabels":["The \"Entry:\" line is followed by Dr 1250 Allowance 1,800 and Cr 1200 Accounts Receivable 1,800 (debit first)","AR after shows $193,000 - $1,800 = $191,200 and Allowance after shows $7,300 - $1,800 = $5,500","Income effect says none at write-off (no expense recorded), and the output never suggests expensing it or using 6810"]}