Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 31 - No. 29)
Which of the following is the correct journal entry to record the write-off of an irrecoverable debt when using the allowance method?
Debit Bad Debt Expense, Credit Accounts Receivable.
Debit Accounts Receivable, Credit Allowance for Doubtful Accounts.
Debit Allowance for Doubtful Accounts, Credit Accounts Receivable.
Debit Bad Debt Expense, Credit Allowance for Doubtful Accounts.
Explanation
The allowance account is debited, and the accounts receivable is credited.
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