Question
1- 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
1- 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? Select one: a. Debit Accounts Receivable $250; credit Allowance for Doubtful Accounts $2,300. b. Debit Allowance for Doubtful Accounts $2,300; credit Accounts Receivable $2,300. c. Debit Allowance for Doubtful Accounts $2,300; credit Bad Debts Expense $2,300. d. Debit Bad Debts Expense $2,300; credit Accounts Receivable $2,300. e. Debit Bad Debts Expense $2,300; credit Allowance for Doubtful Accounts $2,300.
2- Accounts that appear in the balance sheet are often called temporary accounts. Select one: a. False b. True
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