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Axle Motors Inc  Account Receivate 600 Bad Debte Expense 600\begin{array} { l } \text { Account Receivate } &600\\\text { Bad Debte Expense } &&600\\\end{array}

Question 53

Multiple Choice

Axle Motors Inc.has a December 31 year-end.On November 28,20X2,the company sold inventory for $600 on account with the terms 2/10,n/30.On February 28,20X3,the company recognized the account as uncollectible.What is the journal entry for Axle Motors,Inc.on February 28,20X3,if the company uses the specific write-off method?


A)  Account Receivate 600 Bad Debte Expense 600\begin{array} { l } \text { Account Receivate } &600\\\text { Bad Debte Expense } &&600\\\end{array}

B)  Allowance for Uncollectible Accounts 600 Accounts Receivable 600\begin{array}{lccc}\text { Allowance for Uncollectible Accounts }&600 \\\text { Accounts Receivable } &&600\\\end{array}

C)  End Debts Expense 600 Allowance for Uncollectible Accounts 600\begin{array}{lccc}\text { End Debts Expense }&600 \\\text { Allowance for Uncollectible Accounts } &&600\\\end{array}

D)  Accounts Receivable 600 Allowance for Wncollectible Accounts 600\begin{array}{lccc}\text { Accounts Receivable } &600\\\text { Allowance for Wncollectible Accounts } &&600\\\end{array}

E)  Fad Debts Expense 600 Accounts Receivate 600\begin{array}{lccc}\text { Fad Debts Expense } &600\\\text { Accounts Receivate }&&600\end{array}

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