A Company Uses the Allowance Method and Expects Not to Collect

Multiple Choice

A company uses the allowance method and expects not to collect $21,000 of sales.The journal entry to record the estimated bad debt is:

A)
$$\begin{array} { | r | l | } \hline\text { Allowance for Doubtful Accounts } & \$ 21,000 \\\hline \text { Bad Debt Expense } & \$ 21,000 \\\hline\end{array}$$
B)
$$\begin{array} { | r | l l | } \hline\text { Allowance for Doubtful Accounts } & \$ 21,000 & \\\hline \text { Accounts Receivable } & \$ 21,000 \\\hline\end{array}$$
C)
$$\begin{array} { | c | l l | } \hline\text { Bad Debt Expense } & \$ 21,000 \\\hline \text { Allowance for Doubtful Accounts } & \$ 21,000 \\\hline\end{array}$$
D)
$$\begin{array} { | c | l l | } \hline\text { Accounts Receivable } & \$ 21,000 \\\hline \text { Allowance for Doubtful Accounts } & \$ 21,000 \\\hline\end{array}$$