A Customer of Halifax Manufacturing Recently Filed for Bankruptcy Protection

question 88

Multiple Choice

A customer of Halifax Manufacturing recently filed for bankruptcy protection two months ago,leading Halifax's credit manager to conclude that the company would never collect the balance of $15,600 owed by the customer. Which of the following journal entries would be made by Halifax to record the write-off of the customer's Accounts Receivable balance?

• A)Debit Allowance for Doubtful Accounts and credit Accounts Receivable for $15,600.
• B)Debit Bad Debt Expense and credit Allowance for Doubtful Accounts for $15,600.
• C)Debit Bad Debt Expense and credit Accounts Receivable for $15,600.
• D)Debit Sales and credit Accounts Receivable for $15,600.

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Definitions:

Systematic Name

The formal and standardized naming of chemical substances based on their molecular structure and functional groups.

Compound

A substance made up of two or more elements chemically bonded together in fixed proportions.

Systematic Name

The formal name of a chemical substance, based on a set of standard rules for naming molecules as established by the International Union of Pure and Applied Chemistry (IUPAC).

Compound

A material consisting of two or more elements that are chemically bonded together in set proportions.