Using the allowance method,which is the correct adjusting journal entry to record bad debt expense?
A)Debit Bad Debt Expense and credit Allowance for Doubtful Accounts.
B)Debit Allowance for Bad Debt Expense and credit Bad Debt Expense.
C)Debit Bad Debt Expense and credit Sales Revenue.
D)Debit Bad Debt Expense and credit Accounts Receivable.

Question

Quizplus · Accepted Answer

The adjusting entry includes a debit to Bad Debt Expense (to increase this expense account)and a credit to Allowance for Doubtful Accounts (to increase this contra-asset account).

Using the Allowance Method,which Is the Correct Adjusting Journal Entry