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23 March, 11:45

On February 1, a customer's account balance of $2,300 was deemed to be uncollectible. What entry should be recorded on February 1 to record the write-off assuming the company uses the allowance method? Multiple Choice Debit Allowance for Doubtful Accounts $2,300; credit Accounts Receivable $2,300. Debit Allowance for Doubtful Accounts $2,300; credit Bad Debts Expense $2,300. Debit Accounts Receivable $250; credit Allowance for Doubtful Accounts $2,300. Debit Bad Debts Expense $2,300; credit Accounts Receivable $2,300. Debit Bad Debts Expense $2,300; credit Allowance for Doubtful Accounts $2,300.

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  1. 23 March, 12:56
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    Debit Allowance for Doubtful Accounts $2,300; credit Accounts Receivable $2,300

    Explanation:

    The journal entry is shown below:

    Allowance for Doubtful Accounts A/c Dr $2,300

    To Accounts Receivable A/c $2,300

    (Being the written-off amount is recorded)

    Since we have to record this journal entry so we debited the Allowance for Doubtful Accounts A/c and credited the account receivable account so that the correct posting can be done.
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