Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 17 - No. 23)
When a company determines a specific customer's account receivable is uncollectible, the entry to write off this debt would be:
Debit Bad Debt Expense; Credit Accounts Receivable.
Debit Allowance for Doubtful Accounts; Credit Accounts Receivable.
Debit Accounts Receivable; Credit Allowance for Doubtful Accounts.
Debit Bad Debt Expense; Credit Allowance for Doubtful Accounts.
Explanation
The write-off reduces the accounts receivable and utilizes the allowance previously established.
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