A customer of Halifax Manufacturing recently filed for bankruptcy protection two months ago,leading Halifax's credit manager to conclude that the company would never collect the balance of $15,600 owed by the customer. Which of the following journal entries would be made by Halifax to record the write-off of the customer's Accounts Receivable balance?

Question

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Writing-off a specific customer's account receivable balance after it has been determined to be uncollectible involves debiting the Allowance for Doubtful Accounts (to increase this contra-asset account)and crediting Accounts Receivable (to decrease that asset account)for $15,600,the account balance.

A Customer of Halifax Manufacturing Recently Filed for Bankruptcy Protection