Wang corporation follows generally accepted accounting principles in accounting for uncollectibles. wang received notification from a bankruptcy court that its customer, timber creek, had been adjudicated and released from all claims presently pending against it by wang corporation. frank wang, owner of wang corporation, was not at all with this decision. frank had anticipated recovering at least $50,000 from timber creek, and that balance remained in the accounts receivable accounts of wang corporation. because wang corporation has no further remedies for collection, frank directed the accounting department to prepare a journal entry to write off the account of timber creek.