Reference no: EM132959048

Problem 1: To record estimated uncollectible receivables using the allowance method, the adjusting entry would be a

Option 1: debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts

Option 1: debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts

Option 1: debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable

Option 1: debit to Loss on Credit Sales and a credit to Accounts Receivable

Problem 2: You have just received notice that a customer of yours with an Account Receivable balance of $100 has gone bankrupt and will not make any future payments. Assuming you use the allowance method, the entry you make is to
?
Option 1: debit Bad Debt Expense and credit Allowance for Doubtful Accounts

Option 2: debit Bad Debt Expense and credit Accounts Receivable

Option 3: debit Allowance for Doubtful Accounts and credit Accounts Receivable

Option 4: debit Allowance for Doubtful Accounts and credit Bad Debt Expense