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2 October, 07:46

At the beginning of 2015, the balance in Jackson Enterprises' Allowance for Uncollectible Accounts was $31,800. During 2015, the company wrote off $38,000 of accounts receivable. Writing off the individual bad debts would include a:

a. Debit to Bad Debt Expense.

b. Credit to Accounts Receivable.

c. Credit to the Allowance for Uncollectible Accounts.

d. Debit to Bad Debt Expense; credit to the Allowance for Uncollectible Accounts.

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  1. 2 October, 08:00
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    b. Credit to Accounts Receivable.

    Explanation:

    The journal entry is as follows

    Allowance for doubtful accounts A/c Dr $38,000

    To Account receivable A/c $38,000

    (Being the written-off amount is recorded)

    While recording this transaction, we debited the allowance for doubtful debts and credited the account receivable account so that the correct posting could be done
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