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On May 15, Baxtor, Inc. sold $26,000 of merchandise to James, on account. Baxtor could not collect cash from James and wrote off the account.
On May 15, Baxtor, Inc. sold $26,000 of merchandise to James, on account. Baxtor could not collect cash from James and wrote off the account. What is the journal entry to record the
writeoff,
assuming Baxtor uses the allowance method?
A.
| Allowance for Bad Debts | 26,000 | |
| Accounts ReceivableJames | 26,000 |
B.
| Accounts ReceivableJames | 26,000 | |
| Bad Debts Expense | 26,000 |
C.
| Bad Debts Expense | 26,000 | |
| Accounts ReceivableJames | 26,000 |
D.
| Accounts ReceivableJames | 26,000 | |
| Allowance for Bad Debts | 26,000 |
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