Jackson Company Uses the Allowance Method to Account for Bad

Multiple Choice

Jackson Company uses the allowance method to account for bad debts. During 20X4, a customer became bankrupt and a receivable of $5,000 was deemed uncollectible. What is the entry to record the uncollectible amount? $$\begin{array} { | l | l | r | r | } \hline \text { A) } & \text { Allowance for doubtful accounts } & 5,000 & \\\hline & \text { Trade receivables } & & 5,000 \\\hline \text { B) } & \text { Bad debt expense } & 5,000 & \\\hline & \text { Allowance for doubtful accounts } & &5,000 \\\hline \text { C) } & \text { Allowance for doubtful accounts } & 5,000 & \\\hline & \text { Bad debt expense } & & 5,000 \\\hline \text { D) } & \text { Loss on receivables } &5,000 & \\\hline & \text { Trade receivables } & &5,000 \\\hline\end{array}$$

A) Choice A
B) Choice B
C) Choice C
D) Choice D