Lakeview Inc.uses the allowance method.During the year,Lakeview concludes that specific customers will never pay their account balances,which total $6,844.The entry to record the write-off of these accounts receivable would debit:
A)Accounts Receivable and credit Allowance for Doubtful Accounts for $6,844.
B)Accounts Receivable and credit Bad Debt Expense for $6,844.
C)Bad Debt Expense and credit Accounts Receivable for $6,844.
D)Allowance for Doubtful Accounts and credit Accounts Receivable for $6,844.

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.