Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 24 - No. 40)
A company using the allowance method determines that a $500 account is uncollectible. Which of the following is the journal entry to write off the bad debt?
Debit Bad Debt Expense $500, Credit Accounts Receivable $500
Debit Accounts Receivable $500, Credit Allowance for Doubtful Accounts $500
Debit Allowance for Doubtful Accounts $500, Credit Accounts Receivable $500
Debit Cash $500, Credit Accounts Receivable $500
Explanation
The entry debits the allowance and credits accounts receivable.
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