Christo Uses the Allowance Method of Accounting for Bad and Doubtful

question 65

Multiple Choice

Christo uses the allowance method of accounting for bad and doubtful debts. When he received notice that Debtor 3459, who owed him $10 000, was in liquidation he decided to write off the debt as bad. What is the general journal entry to record the write off?

• A) Debit bad debts expense $10 000; credit allowance for doubtful debts $10 000
• B) Debit allowance for doubtful debts $10 000; credit accounts receivable $10 000
• C) Debit bad debts expense $10 000; credit accounts receivable $10 000
• D) Debit allowance for doubtful debts $10 000; credit bad debts expense $10 000

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Definitions:

Northwestern Coast

A geographical term referring to the coastal areas located in the northwestern part of a continent or country, often characterized by specific climatic and ecological features.

North America

A continent entirely within the Northern Hemisphere and almost all within the Western Hemisphere.

Aquatic Ecosystems

Water-based environments—including oceans, lakes, rivers, and wetlands—that support a diverse range of life through complex interrelationships.

Mosses

Small, non-vascular plants that typically form dense green clumps or mats, often in damp or shady locations.