Gus uses an allowance method for recording bad debts. Gus determined that $7,500 of accounts receivable from Jaq Corporation are uncollectible. The entry Gus should make to write off the Jaq account would include:
Question 14 options:
a)
a credit to Cash for $7,500.
b)
a credit to Allowance for Uncollectible Accounts for $7,500.
c)
a credit to Accounts Receivable for $7,500.
d)
a credit to Uncollectible Accounts Expense for $7,500.
e)
None of these.