On February 1,a customer's account balance of $2,300 was deemed to be uncollectible.What entry should be recorded on February 1 to record the write-off assuming the company uses the allowance method?

A) Debit Bad Debts Expense $2,300; credit Accounts Receivable $2,300.
B) Debit Allowance for Doubtful Accounts $2,300; credit Bad Debts Expense $2,300.
C) Debit Allowance for Doubtful Accounts $2,300; credit Accounts Receivable $2,300.
D) Debit Bad Debts Expense $2,300; credit Allowance for Doubtful Accounts $2,300.
E) Debit Accounts Receivable $250; credit Allowance for Doubtful Accounts $2,300.

When using the allowance method, we create an estimation of bad debts using the allowance for doubtful accounts account. When a specific account is deemed uncollectible, we record the write-off as a decrease in the accounts receivable and an equal decrease in the allowance for doubtful accounts. Thus, the correct entry on February 1 would be to Debit Allowance for Doubtful Accounts for $2,300 and Credit Accounts Receivable for $2,300.

Option A is incorrect because it incorrectly credits bad debts expense, which is used for the estimation of bad debts, rather than reducing it.

Option B is incorrect because it debits the allowance for doubtful accounts, which is already established and can now be credited, rather than the accounts receivable account.

Option D is incorrect because it debits bad debts expense, which is used to estimate bad debts rather than for recording write-offs.

Option E is incorrect because the debit amount is incorrect, and it credits the allowance for doubtful accounts for less than the write-off amount.