If a customer owes XYZ Co. $3,700 as an account receivable and the customer goes bankrupt, what entry should XYZ make if the account receivable is worthless and should be written off? XYZ uses the allowance method for uncollectible accounts. Debit Allowance for Doubtful Accounts 3,700; Credit Accounts Receivable 3,700 Debit Bad Debts Expense 3,700; Credit Allowance for Doubtful Accounts 3,700 Debit Accounts Receivable 3,700; Credit Allowance for Doubtful Accounts 3,700 Debit Bad Debts Expense 3,700; Credit Accounts Receivable 3,700

If a customer owes XYZ Co, $3,700 as an account receivable and the customer goes bankrupt, what entry should XYZ make if the account receivable is worthless and should be written off? XYZ uses the allowance method for uncollectible accounts. Debit Allowance for Doubtful Accounts 3,700; Credit Accounts Receivable 3,700 Debit Bad Debts Expense 3,700; Credit Allowance for Doubtful Accounts 3,700 Debit Accounts Receivable 3,700; Credit Allowance for Doubtful Accounts 3,700 Debit Bad Debts Expense 3,700, Credit Accounts Recelvable 3,700