You Have Just Received Notice That a Customer with an Accounts

Multiple Choice

You have just received notice that a customer with an Accounts Receivable balance of $500 has gone bankrupt and will not make any future payments.Assuming you use the allowance method for uncollectible accounts, the entry you make is to

A) debit Allowance for Doubtful Accounts and credit Bad Debts Expense.
B) debit Allowance for Doubtful Accounts and credit Accounts Receivable.
C) debit Bad Debts Expense and credit Allowance for Doubtful Accounts.
D) debit Bad Debts Expense and credit Accounts Receivable.