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

question 53

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

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