ABC has reviewed its receivables and wishes to set up an allowance for credit losses.
Select the double-entry below that best records that event.
Debit Impairment of receivables; Credit Allowance for credit losses (balance
sheet).
Debit Increase in allowance for credit losses (expense); Credit Allowance for
credit losses (balance sheet).
Debit Allowance for credit losses (balance sheet); Credit Increase in allowance
for credit losses (expense);