Question
The following information is available about a company's accounts receivable: June 30 - Accounts receivable balance: $50,000. Nov 15 - Received Cash of $40,000, and
The following information is available about a company's accounts receivable: June 30 - Accounts receivable balance: $50,000. Nov 15 - Received Cash of $40,000, and wrote off the remaining balance. Dec 15 - Recovered the amount written off on Nov 15. Under the direct method, the entry to write-off the uncollectible amount on Nov 15 is: Select one:
A. Debit Bad Debt Expense $10,000; Credit Accounts Receivable $10,000
B. Credit Accounts Receivable $10,000; Debit Bad Debt Expense $10,000
C. Debit Bad Debt Expense $40,000; Credit Accounts Receivable $40,000
D. Debit Bad Debt Expense $50,000; Credit Accounts Receivable $50,000
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