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A Notice Was Received from Mary,who Is a Customer,that She

Question 70

Multiple Choice

A notice was received from Mary,who is a customer,that she was bankrupt.The entry to write-off her balance of $1,250 would be:


A)  Allowance for Doubtful Accounts 1,250 Accounts Receivable/Mary 1,250\begin{array} { | c | l | } \hline \text { Allowance for Doubtful Accounts } & 1,250 \\\hline \text { Accounts Receivable/Mary } & 1,250 \\\hline\end{array}
B)  Accounts Receivable/Mary 1,250 Bad Debt Expense 1,250\begin{array} { | c | l | } \hline \text { Accounts Receivable/Mary } & 1,250 \\\hline \text { Bad Debt Expense } & 1,250 \\\hline\end{array}
C)  Bad Debt Expense 1,250 Allowance for Doubtful Accounts 1,250\begin{array}{|l|lll|} \hline \text { Bad Debt Expense } & 1,250\\\hline \text { Allowance for Doubtful Accounts } & 1,250\\\hline \end{array}

D) None of the above

Correct Answer:

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