Multiple Choice
On February 1, a customer's account balance of $2,300 was deemed to be uncollectible. What entry should be recorded on February 1 to record the write-off assuming the company uses the allowance method?
A) Debit Accounts Receivable $250; credit Allowance for Doubtful Accounts $2,300.
B) Debit Bad Debts Expense $2,300; credit Accounts Receivable $2,300.
C) Debit Bad Debts Expense $2,300; credit Allowance for Doubtful Accounts $2,300.
D) Debit Allowance for Doubtful Accounts $2,300; credit Bad Debts Expense $2,300.
E) Debit Allowance for Doubtful Accounts $2,300; credit Accounts Receivable $2,300.
Correct Answer:

Verified
Correct Answer:
Verified
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