A company uses the allowance method and has determined a customer's bill for $2,000 must be written off. The journal entry to record the write off is:

Question

Quizplus · Accepted Answer

The journal entry to record the write off using the allowance method would be to debit the allowance for doubtful accounts account and credit the accounts receivable account for the customer's bill. Therefore, the correct journal entry would be:
Debit Allowance for Doubtful Accounts $2,000
Credit Accounts Receivable $2,000
Option B is the correct journal entry with the correct account names and numbers.

A Company Uses the Allowance Method and Has Determined a Customer's