The Grass Is Greener Corporation Uses the Allowance Method and Learns

Multiple Choice

The Grass is Greener Corporation uses the allowance method and learns that a customer who owes $350 has gone bankrupt and payment will not be made.The Grass is Greener Corporation should:

A) debit Bad Debt Expense and credit Accounts Receivable for $350.
B) debit the Allowance for Doubtful Accounts and credit Accounts Receivable for $350.
C) debit Bad Debt Expense and credit Cash for $350.
D) debit Accounts Receivable and credit Bad Debt Expense for $350.