At Year End Dodgy Ltd Had a Balance in Accounts

question 12

Multiple Choice

At year end Dodgy Ltd had a balance in Accounts receivable of $40 000 and an Allowance for doubtful debts of $2000.It was decided to write off as irrecoverable the debt of Houdini Ltd totalling $3500.It was further decided that the Allowance for doubtful debts should stand at 10 per cent of Accounts receivable.
-What was the journal entry needed to write off the debt of Houdini Ltd as irrecoverable?

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