The Big Dog company is notified that one of it\'s customers (Jones) is filing fo

Question

The Big Dog company is notified that one of it's customers (Jones) is filing for bankruptcy. The Accounts Receivable balance of the Jones account is $120, the total of which is uncollectible and will be written off.   The Big Dog company uses the Allowance Method for recording bad debts. Writing off the Jones account will: A. Increase Accounts Receivable B. Decrease Accounts Receivable C. Increase Bad Debt Expense D. Decrease Bad Debt Expense The Big Dog company is notified that one of it's customers (Jones) is filing for bankruptcy. The Accounts Receivable balance of the Jones account is $120, the total of which is uncollectible and will be written off.   The Big Dog company uses the Allowance Method for recording bad debts. Writing off the Jones account will: A. Increase Accounts Receivable B. Decrease Accounts Receivable C. Increase Bad Debt Expense D. Decrease Bad Debt Expense

Explanation / Answer

In the allowance method is used to account for uncollectible accounts, Bad Debts Expense is debited when

management estimates the amount of uncollectibles.

so in here,

The Big Dog company uses the Allowance Method for recording bad debts. Writing off the Jones account

So Bad Debts Expense is debited.

ans is:C.Increase Bad Debt Expense

the total of which is uncollectible and will be written off.  

The Big Dog company uses the Allowance Method for recording bad debts. Writing off the Jones account

So Bad Debts Expense is debited.

ans is:C.Increase Bad Debt Expense

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