3) At the beginning of 2021, the balance in Jackson Enterprises' Allowance for Uncollectible Accounts was $31,800. During 2021, the company wrote off $38,000 of accounts receivable. Writing off the individual bad debts would include a: A) Debit to Bad Debt Expense. B) Credit to Accounts Receivable. C) Credit to the Allowance for Uncollectible Accounts. D) Debit to Bad Debt Expense; credit to the Allowance for Uncollectible Accounts.
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
3) At the beginning of 2021, the balance in Jackson Enterprises' Allowance for Uncollectible Accounts was $31,800. During 2021, the company wrote off $38,000 of
A) Debit to Bad Debt Expense.
B) Credit to Accounts Receivable.
C) Credit to the Allowance for Uncollectible Accounts.
D) Debit to Bad Debt Expense; credit to the Allowance for Uncollectible Accounts.
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