Which of the following items should be journalized?
A)a letter advising an employee of a pay raise.
B)a customer's pending bankruptcy (assuming an adequate allowance for doubtful accounts has already been set up).
C)a customer's pending bankruptcy (assuming an adequate allowance for doubtful accounts has not already been set up).
D)(a) and (b).

Question

Quizplus · Accepted Answer

A customer's pending bankruptcy should be journalized if an adequate allowance for doubtful accounts has not already been set up, as it affects the financial statements by potentially increasing bad debt expense.

Which of the Following Items Should Be Journalized