A Company Uses the Allowance Method and Has Determined a Customer's

question 90

Multiple Choice

A company uses the allowance method and has determined a customer's bill for $2,000 must be written off.The journal entry to record the write off is:

• A)
• \[\begin{array} { | c | l | }
• \hline\text { Allowance for Doubtful Accounts } & \$ 2,000 \\
• \hline \text { Bad Debt Expense } & \$ 2,000 \\
• \hline
• \end{array}\]
• B)
• \[\begin{array} { | r | l l | }
• \hline\text { Allowance for Doubtful Accounts } & \$ 2,000 & \\
• \hline \text { Accounts Receivable } & \$ 2,000 \\
• \hline
• \end{array}\]
• C)
• \(\begin{array}{|l|l|}
• \hline \text { Accounts Receivable }&\$ 2,000 \\
• \hline \text { Allowance for Doubtful Accounts }&\$ 2,000\\\hline
• \end{array} \)
• D)
• \(\begin{array}{|l|l|}
• \hline\text { Bad Debt Expense }&\$2,000 \\
• \hline \text { Allowance for Doubtful Accounts }&\$2,000\\\hline
• \end{array} \)

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Definitions:

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Autonomic

Relating to the autonomic nervous system, which controls involuntary bodily functions such as heartbeat and digestion.

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