On September 1, a customer's account balance of $2,300 was deemed to be uncollectible. What entry should be recorded on September 1 to record the write-off assuming the company uses the allowance method?

Question

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The entry to write-off an uncollectible account using the allowance method involves debiting the allowance for doubtful accounts and crediting accounts receivable. This is done to recognize that the previously established allowance was not enough to cover the bad debt expense incurred. Option A is incorrect because it debits bad debts expense, which is an income statement account, instead of the allowance for doubtful accounts, which is a balance sheet account. Option B is incorrect because it is reversing the entry used to establish the allowance for doubtful accounts. Option D is incorrect because it should be a credit to the allowance for doubtful accounts, not a debit. Option E is unrelated to the scenario given in the question.

On September 1, a Customer's Account Balance of $2,300 Was