Dalton Company uses the allowance method to account for uncollectible receivables. Dalton has determined that the Irish Company account is uncollectible. To write-off this account, Dalton should debit
A) Bad Debt Expense and credit Accounts Receivable
B) Bad Debt Expense and credit Allowance for Doubtful Accounts
C) Allowance for Doubtful Accounts and credit Accounts Receivable
D) Accounts receivable and credit Allowance for Doubtful Accounts

Question

Quizplus · Accepted Answer

Under the allowance method, when an account is determined to be uncollectible, the company debits the Allowance for Doubtful Accounts and credits Accounts Receivable to write off the specific account.

Dalton Company Uses the Allowance Method to Account for Uncollectible