Question

1. Under the allowance method for uncollectible accounts, the journal entry to record the estimate of uncollectible accounts would include a credit to Accounts Receivable. Bad Debt Expense. Allowance for Doubtful Accounts. Cash. b 2. Under the allowance method for uncollectible accounts, the journal entry to record the write-off of an account receivable would include a __________ to __________. credit; Bad Debt Expense debit; Bad Debt Expense credit; Cash credit; Accounts Receivable b

Answer 1

Answer:

Part 1

Dr Bad Debts Expense

Cr Allowance for Doubtful Accounts

Part 2

Dr Allowance for doubtful accounts

Cr Accounts Receivable

Explanation:

Part 1. The double entry required to record the increase in provision for noncollectable accounts under the allowance method would be as under:

Dr Bad Debts Expense

Cr Allowance for Doubtful Accounts

Part 2. Similarly the write-off to the accounts receivable would be accounted for as under:

Dr Allowance for doubtful accounts

Cr Accounts Receivable

The above are the correct entries required under the allowance method.