Asked by Danielle Marie on May 13, 2024
Verified
Which of the following statements is correct?
A) The journal entry to record bad debt expense requires a debit to bad debt expense and a credit to accounts receivable.
B) The journal entry to record bad debt expense requires a debit to bad debt expense and a credit to allowance for doubtful accounts.
C) The journal entry to record the write off of an uncollectible account receivable requires a debit to bad debt expense and a credit to accounts receivable.
D) The journal entry to record the write off of an uncollectible account receivable requires a debit to bad debt expense and a credit to allowance for doubtful accounts.
Bad Debt Expense
An expense account reflecting accounts receivable that a company does not expect to collect and is considered a loss.
Allowance for Doubtful Accounts
An accounting provision made for accounts receivable that may not be collectable.
Accounts Receivable
Funds that a company's clients have not yet paid for products or services that have already been provided to them.
- Ascertain the expense related to uncollectible accounts and perceive its effect on the allowance for doubtful accounts and balance sheets.
Verified Answer
Learning Objectives
- Ascertain the expense related to uncollectible accounts and perceive its effect on the allowance for doubtful accounts and balance sheets.
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