A customer of Exquisite Flooring recently filed for bankruptcy protection two months ago, leading the credit manager of Exquisite Flooring to conclude that the company would never collect the balance of $2,800 owed by the customer to our company.
-Use the information above to answer the following question.Which of the following journal entries would be made by Exquisite Flooring to record the write-off of the customer's Accounts Receivable balance?
A) Debit Allowance for Doubtful Accounts and credit Accounts Receivable for $2,800
B) Debit Bad Debt Expense and credit Allowance for Doubtful Accounts for $2,800
C) Debit Bad Debt Expense and credit Accounts Receivable for $2,800
D) Debit Sales and credit Accounts Receivable for $2,800

Question

Quizplus · Accepted Answer

The Answer of A customer of Exquisite Flooring recently filed for bankruptcy protection two months ago, leading the credit manager of Exquisite Flooring to conclude that the company would never collect the balance of $2,800 owed by the customer to our company.
-Use the information above to answer the following question.Which of the following journal entries would be made by Exquisite Flooring to record the write-off of the customer's Accounts Receivable balance?
A) Debit Allowance for Doubtful Accounts and credit Accounts Receivable for $2,800
B) Debit Bad Debt Expense and credit Allowance for Doubtful Accounts for $2,800
C) Debit Bad Debt Expense and credit Accounts Receivable for $2,800
D) Debit Sales and credit Accounts Receivable for $2,800

A Customer of Exquisite Flooring Recently Filed for Bankruptcy Protection