On February 1,a Customer's Account Balance of $2,300 Was Deemed

question 36

Multiple Choice

On February 1,a customer's account balance of $2,300 was deemed to be uncollectible.What entry should be recorded on February 1 to record the write-off assuming the company uses the allowance method?

• A)Debit Bad Debts Expense $2,300;credit Accounts Receivable $2,300.
• B)Debit Allowance for Doubtful Accounts $2,300;credit Bad Debts Expense $2,300.
• C)Debit Allowance for Doubtful Accounts $2,300;credit Accounts Receivable $2,300.
• D)Debit Bad Debts Expense $2,300;credit Allowance for Doubtful Accounts $2,300.
• E)Debit Accounts Receivable $250;credit Allowance for Doubtful Accounts $2,300.

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Definitions:

Competitive Advantage

A condition or unique attribute that allows a company to outperform its competitors, securing a superior position in the market.

Market Opportunity

The identification of a specific market need that can be met by a new product or service, offering potential for business growth.

Sole Proprietor

A business owned and run by one individual where there's no legal distinction between the owner and the business entity.

Scalability

The capability of a system, business model, or product to handle a growing amount of work or to be enlarged to accommodate that growth.