Question
You are informed that Warren Hodges, one of your customers, has declared bankruptcy. Hodges has an account with your company with a current balance of
You are informed that Warren Hodges, one of your customers, has declared bankruptcy. Hodges has an account with your company with a current balance of
$2,300.
Using the allowance method, the entry to write off the uncollectible account involves _______.
A.
a debit to allowance for doubtful accounts and a credit to the Hodges's account receivable
B.
a debit to bad-debt expense and a credit to Hodges's account receivable
C.
a debit to Hodges's account receivable and a credit to allowance for doubtful accounts
D.
a debit to Hodges's account receivable and a credit to bad-debt expense
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