A Customer of Halifax Manufacturing Recently Filed for Bankruptcy Protection

Multiple Choice

A customer of Halifax Manufacturing recently filed for bankruptcy protection two months ago,leading Halifax's credit manager to conclude that the company would never collect the balance of $15,600 owed by the customer. Which of the following journal entries would be made by Halifax to record the write-off of the customer's Accounts Receivable balance?

A) Debit Allowance for Doubtful Accounts and credit Accounts Receivable for $15,600.
B) Debit Bad Debt Expense and credit Allowance for Doubtful Accounts for $15,600.
C) Debit Bad Debt Expense and credit Accounts Receivable for $15,600.
D) Debit Sales and credit Accounts Receivable for $15,600.