under the allowance method, when a company determines that a specific customers accounts receivable will not…

under the allowance method, when a company determines that a specific customers accounts receivable will not be collected, its accounting department will debit:\n\na. accounts receivable and credit allowance for bad debts.\nb. allowance for bad debts and credit bad debt expense.\nc. uncollectible - account expense and credit accounts receivable.\nd. allowance for bad debts and credit accounts receivable.

under the allowance method, when a company determines that a specific customers accounts receivable will not be collected, its accounting department will debit:\n\na. accounts receivable and credit allowance for bad debts.\nb. allowance for bad debts and credit bad debt expense.\nc. uncollectible - account expense and credit accounts receivable.\nd. allowance for bad debts and credit accounts receivable.

Answer

Brief Explanations:

Under the allowance method, when a specific customer's accounts - receivable is deemed uncollectible, the company reduces the accounts - receivable balance and also the allowance for bad debts balance. Debiting the Allowance for Bad Debts and crediting Accounts Receivable reflects this write - off.

Answer:

D. Allowance for Bad Debts and credit Accounts Receivable