17.

Company Z uses the allowance method for uncollectible accounts. What is the journal entry for a write-off?

None of the above are correct entries

Bad debt expense XXX Accounts Receivable XXX

Bad debt expense XXX Allowance for Doubtful Accounts XXX

Allowance for Doubtful Accounts XXX Accounts Receivable XXX

18.

Company Y had the following information in its trail balance before adjustments: sales (on credit) $40,000; accounts receivable $19,500; allowance for doubtful accounts (credit balance) $500. The company estimates that 3% of its receivables will be uncollectible. What amount of allowance for doubtful accounts will the company credit in its journal entry to record estimated bad debts?

The company will not credit the allowance since the amount of estimated bad debts does not exceed the existing balance

$85

$670

$585