On February 1, a customer's account balance of $2,300 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? Multiple Choice Debit Allowance for Doubtful Accounts $2,300; credit Accounts Receivable $2,300. Debit Allowance for Doubtful Accounts $2,300; credit Bad Debts Expense $2,300. Debit Accounts Receivable $250; credit Allowance for Doubtful Accounts $2,300. Debit Bad Debts Expense $2,300; credit Accounts Receivable $2,300. Debit Bad Debts Expense $2,300; credit Allowance for Doubtful Accounts $2,300.

Question

Keira Wilcox

Business

16 December, 01:13

On February 1, a customer's account balance of $2,300 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? Multiple Choice Debit Allowance for Doubtful Accounts $2,300; credit Accounts Receivable $2,300. Debit Allowance for Doubtful Accounts $2,300; credit Bad Debts Expense $2,300. Debit Accounts Receivable $250; credit Allowance for Doubtful Accounts $2,300. Debit Bad Debts Expense $2,300; credit Accounts Receivable $2,300. Debit Bad Debts Expense $2,300; credit Allowance for Doubtful Accounts $2,300.

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Answers (1)

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Ian · Answer 1

Debit Allowance for Doubtful Accounts $2,300; credit Accounts Receivable $2,300

Explanation:

The journal entry is shown below:

Allowance for Doubtful Accounts A/c Dr $2,300

To Accounts Receivable A/c $2,300

(Being the written-off amount is recorded)

Since we have to record this journal entry so we debited the Allowance for Doubtful Accounts A/c and credited the account receivable account so that the correct posting can be done.