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Dillon Company Uses the Allowance Method to Account for Bad

question 40

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Dillon Company uses the allowance method to account for bad debts.The entry to write-off a bad account (one that will never be collected) should be:  Debit  Credit A.  Bad debt expense Accounts receivable  B.  Bad debt expense  Allowance for doubtful accounts  C.  Sales revenue  Accounts receivable D. Allowance for doubtful accounts  Accounts receivable \begin{array}{l l c}& \text { Debit } & \text { Credit }\\\text {A. } &\text { Bad debt expense} &\text { Accounts receivable }\\\text { B. } & \text { Bad debt expense }&\text { Allowance for doubtful accounts }\\\text { C. } & \text { Sales revenue }&\text { Accounts receivable}\\\text { D. } & \text {Allowance for doubtful accounts }&\text { Accounts receivable }\\\end{array}


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