The entry that includes a debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable is a(n):
A)write-off of a specific customer's account.
B)adjusting entry to allow for estimated bad debts.
C)subsidiary entry to increase a customer's account for credit sales.
D)net realizable entry to report the amount expected to be collected.

Question

Quizplus · Accepted Answer

A write-off is the act of removing an uncollectible account and its corresponding allowance from the accounting records.The entry includes a debit to Allowance for Doubtful Accounts (to decrease that contra-asset account)and a credit to Accounts Receivable (to decrease that asset account).

The Entry That Includes a Debit to Allowance for Doubtful