Assume Credit Categories Uses the Allowance Method for Bad Debts $\begin{array}{lll}\text { Bad Debts Expense } & 400 \\\quad \text { Accounts Receivable } & & 400 \\\end{array}$

question 17

Multiple Choice

Assume Credit Categories uses the allowance method for bad debts.Credit Categories wrote off the $400 account of P.Miller on February 19,20X3.On October 8,20X3 Credit Categories received a check for $400 from P.Miller.Which of the following is(are) the journal entry(ies) that Credit Categories will make on October 8,20X3?

• A)\(\begin{array}{lll}
• \text { Bad Debts Expense } & 400 \\
• \quad \text { Accounts Receivable } & & 400 \\
• \end{array}\)
• B) \(\begin{array}{lccc}
• \text { Cash } & 400\\
• \quad \text { Bad Debts Expense } & & 400 \\
• \end{array}\)
• C)\(\begin{array}{lccc}
• \text { Accounts Receivable } & 400\\
• \quad \text { Allowance for Uncollectible Accounts } & & 400 \\
• \text { Cash } &400\\
• \quad \text { Accounts Receivable } & &400 & \\
• \end{array}\)
• D)\(\begin{array}{lccc}
• \text { Cash } & 400 \\
• \text { Accounts Receivable } & & 400
• \end{array}\)
• E)No journal entry is required on October 8,20X3.

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