When $2,500 of accounts receivable are determined to be uncollectible,which of the following should the company record to write off the accounts using the allowance method?

Question

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When using the allowance method to write off uncollectible accounts, the company should debit the Allowance for Uncollectible Accounts and credit Accounts Receivable. This reflects the decrease in the estimated amount of accounts receivable the company expects to collect. Option A is incorrect because it debits Bad Debt Expense, which is already recognized as an expense in a previous period. Option B is incorrect because it incorrectly adjusts the balance of Bad Debt Expense. Option C is incorrect because it credits Accounts Receivable, which should only be credited at the time of collection.

When $2,500 of Accounts Receivable Are Determined to Be Uncollectible,which