Question

At the beginning of 2018, the balance in Jackson Enterprises' Allowance for Uncollectible Accounts was $31,800. During 2018, the company wrote off $38,000 of accounts receivable. Writing off the individual bad debts would include a:a. Debit to Bad Debt Expense.b. Credit to Accounts Receivable.c. Credit to the Allowance for Uncollectible Accounts.d. Debit to Bad Debt Expense; credit to the Allowance for Uncollectible Accounts.

Answer 1

Answer:

B - Credit to Accounts Receivable

Explanation:

Account receivable is an asset (current asset) that should be collected within a year.

increase in assets are debited whereas decrease in assets are credited. in Jackson Enterprises' case, accounts receivables is write- off (reduced), therefore it is credited.

Hence, Writing off the individual bad debts would include Credit to Accounts Receivable.