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25 November, 18:38

On February 1, a customer's account balance of $3,800 was deemed to be uncollectible. What entry should be recorded on February 1 to record the write-off assuming the company uses the allowance method?

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  1. 25 November, 18:42
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    Debit Allowance for Accounts $3800;

    credit Accounts Receivable $3800.

    Explanation:

    given data

    account balance = $3,800

    solution

    As it assume that it is used allowance method

    that means it is a preassume that a bad debts may happen and Further bad debt are expense so it will be debit.

    so here

    Debit allowances for Doubt full Accounts 3800

    and credit account receivable for 3800
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