Assume that on February 25, a customer who owes Berry Sales Company $2,000 is de
ID: 2493830 • Letter: A
Question
Assume that on February 25, a customer who owes Berry Sales Company $2,000 is declared bankrupt by a federal court. The entry that would be made to write off this account is:
Allowance for Uncollectible Accounts 2,000
Accounts Receivable/Customer Account 2,000
Accounts Receivable/Customer Account 2,000
Allowance for Uncollectible Accounts 2,000
Accounts Receivable 2,000
Notes Receivable 2,000
Cash 2,000
Accounts Receivable 2,000
Allowance for Uncollectible Accounts 2,000
Accounts Receivable/Customer Account 2,000
Accounts Receivable/Customer Account 2,000
Allowance for Uncollectible Accounts 2,000
Accounts Receivable 2,000
Notes Receivable 2,000
Cash 2,000
Accounts Receivable 2,000
Explanation / Answer
A. Allowance For Uncollectible Account Dr $2000
Account Receivable/Customer a/c $2000
(Being entry made for the write off the amount, throgh this the customer a/c is credited as nothing is receivableby him and will be debited by allowance for uncollectible a/c as its a bad debt)