Which of the following entries would be used to account for uncollectable receivables using the allowance method?
A)Bad debts expense is debited and Accounts receivable is credited.
B)Allowance for doubtful debts is debited and Bad debts expense is credited.
C)Bad debts expense is debited and Allowance for doubtful debts is credited.
D)Accounts receivable is debited and Bad debts expense is credited.

Question

Quizplus · Accepted Answer

Under the allowance method, bad debts expense is recorded by debiting Bad Debts Expense and crediting Allowance for Doubtful Debts to estimate uncollectible accounts.

Which of the Following Entries Would Be Used to Account