You Have Just Received Notice That a Customer with an Accounts

question 11

Multiple Choice

You have just received notice that a customer with an Accounts Receivable balance of $500 has gone bankrupt and will not make any future payments.Assuming you use the allowance method for uncollectible accounts, the entry you make is to

• A)debit Allowance for Doubtful Accounts and credit Bad Debts Expense.
• B)debit Allowance for Doubtful Accounts and credit Accounts Receivable.
• C)debit Bad Debts Expense and credit Allowance for Doubtful Accounts.
• D)debit Bad Debts Expense and credit Accounts Receivable.