Assume that on February 25,a customer who owes Berry Sales Company $2,000 is declared bankrupt by a federal court.The entry that would be made to write off this account is:
A)Allowance for Uncollectible Accounts 2,000 Accounts Receivable/Customer Account 2,000
B)Accounts Receivable/Customer Account 2,000 Allowance for Uncollectible Accounts 2,000
C)Accounts Receivable 2,000 Notes Receivable 2,000
D)Cash 2,000 Accounts Receivable 2,000

Question

Quizplus · Accepted Answer

The correct entry to write off an account when a customer is declared bankrupt is to debit the Allowance for Uncollectible Accounts and credit Accounts Receivable/Customer Account.

Assume That on February 25,a Customer Who Owes Berry Sales