When a company uses the allowance method of accounting for uncollectible receivables, which entry would not be found in the general journal?

Question

Quizplus · Accepted Answer

Option B is the only entry that would not be found in the general journal when using the allowance method of accounting for uncollectible receivables. This entry represents a specific write-off of an uncollectible account and would be recorded in a special journal for such transactions. Options A and C represent adjusting entries to record estimated bad debts expense and the allowance for doubtful accounts, respectively. Option D represents a cash sale and the subsequent increase in accounts receivable, which would be recorded in the general journal.

When a Company Uses the Allowance Method of Accounting for Uncollectible