on March 13 2020 bobcat confirmed that traminc filed for bankruptcy

BobCat Inc. follows US GAAP in its accounting practices. On March 13, 2020 BobCat confirmed that TramInc. filed for bankruptcy. After communicating with the customer, it became clear that Traminc will not be able to pay the remaining $2000 balance to BobCat, so BobCat recorded a write off. BobCat would debit Allowance for Bad Debts and a credit to Bad Debts Expense. Allowance for Bad Debts and a credit to Accounts Receivable. Bad Debts Expense and a credit to Accounts Receivable, Bad Debts Expense and a credit to Allowance for Bad Debts