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

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:

A)
$$\begin{array} { | c | l | } \hline\text { Allowance for Doubtful Accounts } & \$ 2,000 \\\hline \text { Bad Debt Expense } & \$ 2,000 \\\hline\end{array}$$
B)
$$\begin{array} { | r | l l | } \hline\text { Allowance for Doubtful Accounts } & \$ 2,000 & \\\hline \text { Accounts Receivable } & \$ 2,000 \\\hline\end{array}$$
C)
$\begin{array}{|l|l|}\hline \text { Accounts Receivable }&\$ 2,000 \\\hline \text { Allowance for Doubtful Accounts }&\$ 2,000\\\hline \end{array}$
D)
$\begin{array}{|l|l|}\hline\text { Bad Debt Expense }&\$2,000 \\\hline \text { Allowance for Doubtful Accounts }&\$2,000\\\hline\end{array}$

Correct Answer:

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