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Canada Ltd uses the allowance method of accounting for bad and doubtful debts. When he received notice that Mr Toronto, who owed him $8 000,
Canada Ltd uses the allowance method of accounting for bad and doubtful debts. When he received notice that Mr Toronto, who owed him $8 000, was in liquidation he decided to write off the debt as bad. What is the general journal entry to record the write oft? Select one: a. Debit bad debts expense $8 000; credit allowance for doubtful debts $8 000 b. Debit bad debts expense $8 000; credit accounts receivable $8 000 O c. Debit allowance for doubtful debts $8 000; credit bad debts expense $8 000 d. Debit allowance for doubtful debts $8 000; credit accounts receivable $8 000
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