What would be the basis for the following journal entry if it appears on Travis Company records? Travis uses the allowance method. $\begin{array} { | c | l | }
\hline \text { Allowance for Doubtful Accounts } & 150 \
\hline \text { Accounts Receivable -Tim Morgan } & 150 \
\hline
\end{array}$

Question

What would be the basis for the following journal entry if it appears on Travis Company records? Travis uses the allowance method. $\begin{array} { | c | l | } 
\hline \text { Allowance for Doubtful Accounts } & 150 \
\hline \text { Accounts Receivable -Tim Morgan } & 150 \
\hline
\end{array}$

Quizplus · Accepted Answer

This journal entry is for writing off a specific account. It decreases Accounts Receivable for Tim Morgan and also decreases the Allowance for Doubtful Accounts, indicating that Travis Company has deemed Tim Morgan's account uncollectible.

What Would Be the Basis for the Following Journal Entry