Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 15 - No. 18)
When using the allowance method, the entry to write off a specific uncollectible account includes a:
Debit to Bad Debt Expense and a credit to Accounts Receivable.
Credit to Bad Debt Expense and a debit to Accounts Receivable.
Debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable.
Credit to Allowance for Doubtful Accounts and a debit to Accounts Receivable.
Explanation
The write-off reduces both Accounts Receivable and the Allowance for Doubtful Accounts.
Comments (0)
