Question
14. Mohr Company manufactures lawn furniture that is sold to retailers like big box home improvement stores. During October 2021, Mohr sold furniture to Moore
14. Mohr Company manufactures lawn furniture that is sold to retailers like big box home improvement stores. During October 2021, Mohr sold furniture to Moore Home on account in the amount of $40,000. At the end of 2021, the balance was still outstanding. In January 2022, Mohr decided to write off this particular account as it did not appear the balance would ever be collected. Choose the correct journal entry for this transaction below.
A. Debit allowance for doubtful
B. Debit bad debt expense 40,000 and credit allowance for doubtful accounts 40,000
C. Debit bad debt expense 40,000 and credit accounts receivable 40,000
D. Debit cash 40,000 and credit accounts receivable 40,000
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