Kandris Corporation had a balance in accounts receivable of $600,000 and a balan

Question

Kandris Corporation had a balance in accounts receivable of $600,000 and a balance in allowance for doubtful accounts of $55,000, when management decided the account receivable from Dunn Corporation of $2,000 had become uncollectible. What journal entry should Kandris Corporation make to write-off the uncollectible account?

Debit Bad Debt Expense, credit Allowance for Doubtful Accounts, $2,000
       Debit Accounts Receivable, credit Allowance for Doubtful Accounts, $2,000
       Debit Allowance for Doubtful Accounts, credit Accounts Receivable, $2,000
       Debit Allowance for Doubtful Accounts, credit Bad Debt Expense, $2,000

Explanation / Answer

C is the correct option as 2000 will be credited from accounts receivables

as decrease in assets is shown as a credit

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