What would be the basis for the following journal entry if it appears on Travis Company's records? Travis uses the allowance method.
$$\begin{array} { | c | l | }
\hline \text { Allowance for Doubtful Accounts } & 150 \
\hline \text { Accounts Receivable -Tim Morgan } & 150 \
\hline
\end{array}$$
A)The firm is estimating its uncollectible accounts.
B)The firm is writing off a specific account.
C)The firm is making a collection of a previously written-off account.
D)It is a reversing entry.

Question

What would be the basis for the following journal entry if it appears on Travis Company's records? Travis uses the allowance method.
$$\begin{array} { | c | l | } 
\hline \text { Allowance for Doubtful Accounts } & 150 \
\hline \text { Accounts Receivable -Tim Morgan } & 150 \
\hline
\end{array}$$
A)The firm is estimating its uncollectible accounts.
B)The firm is writing off a specific account.
C)The firm is making a collection of a previously written-off account.
D)It is a reversing entry.

Quizplus · Accepted Answer

The Answer of What would be the basis for the following journal entry if it appears on Travis Company's records? Travis uses the allowance method.
$$\begin{array} { | c | l | } 
\hline \text { Allowance for Doubtful Accounts } & 150 \
\hline \text { Accounts Receivable -Tim Morgan } & 150 \
\hline
\end{array}$$
A)The firm is estimating its uncollectible accounts.
B)The firm is writing off a specific account.
C)The firm is making a collection of a previously written-off account.
D)It is a reversing entry.

What Would Be the Basis for the Following Journal Entry