Question

The entry to record the write- off of Mendez, Inc.'s account using the allowance method is : A. Bad debts expense, Allowance for doubtful accounts B. Bad debts expense, Accounts receivable-- Mendez, Inc. C. Allowance for doubtful accounts, accounts receivable-- Mendez, Inc. D. Accounts receivable-- Mendez, Inc. Allowance for doubtful accounts

Answer 1

The correct entry to record the write-off of Mendez, Inc.'s account using the allowance method is option C: Allowance for doubtful accounts, accounts receivable-- Mendez, Inc.

Step-by-step explanation:

The correct entry to record the write-off of Mendez, Inc.'s account using the allowance method is option C: Allowance for doubtful accounts, accounts receivable-- Mendez, Inc.

When using the allowance method, the write-off of an uncollectible account involves reducing the Accounts Receivable balance and the Allowance for Doubtful Accounts balance by the same amount.

This reflects the recognition that the specific account is unlikely to be collected. Option C correctly reflects this process by debiting Allowance for Doubtful Accounts and crediting Accounts Receivable-- Mendez, Inc.

Answer 2

The correct entry to record the write-off of Mendez, Inc.'s account using the allowance method is option C: Allowance for doubtful accounts, accounts receivable-- Mendez, Inc.

Step-by-step explanation:

The correct entry to record the write-off of Mendez, Inc.'s account using the allowance method is option C: Allowance for doubtful accounts, accounts receivable-- Mendez, Inc.

When an account is deemed uncollectible, it is removed from the accounts receivable balance and recorded as an expense in the books. The allowance for doubtful accounts is a contra asset account that represents the estimated amount of uncollectible accounts receivable.