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EasyLearn Inc

Question 2

Multiple Choice

EasyLearn Inc., a book publishing company, uses the allowance method of accounting for bad debts expense. During the year, an amount of $2,000 was determined to be uncollectible from a customer; the credit balance in the Allowance for Doubtful Accounts is $3,000. Which of the following journal entries records the write off of the uncollectible customer account?


A) Debit Bad Debts Expense by $2,000, and credit Accounts Receivable by $2,000.
B) Debit Bad Debts Expense by $2,000, and credit Allowance for Doubtful Accounts by $2,000.
C) Debit Allowance for Doubtful Accounts by $2,000, and credit Accounts Receivable by $2,000.
D) Debit Accounts Receivable by $2,000, and credit Allowance for Doubtful Accounts by $2,000.

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