Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 43 - No. 22)
What is the usual journal entry when writing off an uncollectible account that was previously covered by an allowance for doubtful debts?
Debit Allowance for Doubtful Debts, Credit Accounts Receivable.
Debit Bad Debt Expense, Credit Accounts Receivable.
Debit Accounts Receivable, Credit Allowance for Doubtful Debts.
Debit Bad Debt Expense, Credit Allowance for Doubtful Debts.
Explanation
The allowance is debited, and the related receivable is credited.
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