Question

Under the allowance method for uncollectible accounts, the journal entry to record the estimate of uncollectible accounts would include a credit to

Answer 1

Answer and Explanation:

The journal entry to record the estimation of the uncollectible accounts is shown below:

Bad debt expense XXXX

To Allowance of doubtful debts XXXX

(Being the estimation of the uncollectible account is recorded)

Here the bad debt expense is debited as it increases the expenses account and credited the allowance as it decreased the assets

Hence, the same is to be considered