What would be the basis for the following entry on a firm's records?
$$\begin{array} { | r | l | }
\hline \text { Bad Debt Expense } & 150 \
\hline \text { Allowance for Doubtful } \
\text { Accounts } & 150\
\hline
\end{array}$$
A)The firm is using the direct write-off method.
B)The firm is writing off an uncollectible account.
C)The firm is using the allowance method for estimating bad debt.
D)All of these answers are correct.

Question

What would be the basis for the following entry on a firm's records?
$$\begin{array} { | r | l | } 
\hline \text { Bad Debt Expense } & 150 \
\hline \text { Allowance for Doubtful } \
\text { Accounts } & 150\
\hline
\end{array}$$
A)The firm is using the direct write-off method.
B)The firm is writing off an uncollectible account.
C)The firm is using the allowance method for estimating bad debt.
D)All of these answers are correct.

Quizplus · Accepted Answer

The entry indicates that the firm is using the allowance method for estimating bad debt, as it involves recording bad debt expense and adjusting the allowance for doubtful accounts.

What Would Be the Basis for the Following Entry on a Firm's