Question

Flora Co. uses the allowance method of accounting for uncollectible accounts receivable. The entry to write off an account that has been determined to be uncollectible would be to

Answer 1

Debit Bad debt expense account

Credit Accounts receivable

Being entries to account for uncollectible debts

Step-by-step explanation:

Under the allowance method, when the organization estimates that there is a probability that a receivable may not be collectible, the entries posted are

Dr Bad debt expense account (P/L)

Cr Allowance for doubtful debt (B/S)

Where it has been determined that the debts are uncollectible (and no previous allowance had been made), the entries posted are;

Dr Bad debt expense account

Cr Accounts receivable