Answer:
Debit to Bad Debt Expense
Explanation:
When it is assessed that some receivables (due from customers who bought goods on account) may not be collectible, the required entries are debit bad debt expense and credit allowance for bad debt.
However, where the assessment concludes that the debt will not be collectible, the required entries are debit bad debt expense and credit account receivables (where no allowance had been recorded before). If an allowance had been recorded for the debt now assessed as incollectible, the entries required would be debit allowance for bad debt and credit account receivables.
