Question

On February 1, a customer's account balance of $3,800 was deemed to be uncollectible. What entry should be recorded on February 1 to record the write-off assuming the company uses the allowance method?

Answer 1

Debit Allowance for Accounts $3800;

credit Accounts Receivable $3800.

Step-by-step explanation:

given data

account balance = $3,800

solution

As it assume that it is used allowance method

that means it is a preassume that a bad debts may happen and Further bad debt are expense so it will be debit.

so here

Debit allowances for Doubt full Accounts 3800

and credit account receivable for 3800