Question

Question 10

2 points
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Donald, owner of Dallas Company, begin accounting for bad debts expense. Assume that Dallas Company has total revenues of $79,000 during 2019 and the Accounts Receivable balance on
December 31 2019. is $42.000
Assume that Dallas Company has one account receivable of $4,850 determined to be uncollectable, what journal entry is made to write of the uncollectable account?

Answer 1

Allowance for doubtful account Dr 4850 , To Account receivable Cr 4850

Explanation:

Journal Entry Debit Credit

Allowance for doubtful account $4850

To Account receivable $4850

A debit to the allowance for doubtful accounts is to reduce the allowance balance that was previously established and a credit to the accounts receivable is to remove the amount that will not be collected.