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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

Respuesta :

Answer:

Journal Entry

Explanation:

The Journal Entry is shown below:-

Allowance for Doubtful Accounts Dr,      $2,300

      To Accounts Receivable                            $2,300

(Being write off is recorded)

Therefore for recording the write off we debited allowance for doubtful debts accounts and credited accounts receivable.

And it is presumed that it is using allowances method which means it is supposed that bad debts will occur. More bad debt is spending and will thus be debited.

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