On February 1, a customer's account balance of $2,600 was deemed to be uncollectible. What entry should be recorded on February 1 to record the write-off assuming the company uses the allowance method?

On February 1, a customer's account balance of $2,600 was deemed to be uncollectible. What entry should be recorded on February 1 to record the write-off assuming the company uses the allowance method?

Debit Bad Debts Expense $2,600; credit Allowance for Doubtful Accounts $2,600.

Debit Accounts Receivable $2,600; credit Allowance for Doubtful Accounts $2,600.

Debit Allowance for Doubtful Accounts $2,600; credit Bad Debts Expense $2,600.

Debit Bad Debts Expense $2,600; credit Accounts Receivable $2,600.

Debit Allowance for Doubtful Accounts $2,600; credit Accounts Receivable $2,600.

Answer

Debit Allowance for Doubtful Accounts $2,600; credit Accounts Receivable $2,600.