You Are Informed That Warren Hodges, One of Your Customers

Multiple Choice

You are informed that Warren Hodges, one of your customers, has declared bankruptcy. Hodges has an account with your company with a current balance of $2,300. Using the allowance method, the entry to write off the uncollectible account involves:

A) a debit to allowance for doubtful accounts and a credit to the Hodges's account receivable.
B) a debit to Hodges's account receivable and a credit to bad-debt expense.
C) a debit to bad-debt expense and a credit to Hodges's account receivable.
D) a debit to Hodges's account receivable and a credit to allowance for doubtful accounts.