Kata Company uses the allowance method.On May 1,Kata wrote off a $22,000 customer account balance when it becomes clear that the particular customer will never pay.The journal entry to record the write-off on May 1 would include which of the following?
A)Debit to Bad Debt Expense and credit to Allowance for Doubtful Accounts.
B)Debit to Accounts Receivable and credit to Allowance for Doubtful Accounts.
C)Debit to Allowance for Doubtful Accounts and credit to Bad Debt Expense.
D)Debit to Allowance for Doubtful Accounts and credit to Accounts Receivable.

Question

Quizplus · Accepted Answer

Using the allowance method,the entry to record a write-off includes a debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable.

Kata Company Uses the Allowance Method