Workman Tools estimates its uncollectible accounts expense for the year to be $950.00. What is the correct entry to record the estimated uncollectible accounts expense?

A. Debit Uncollectible Accounts Expense, $950.00; credit Accounts Receivable, $950.00B. Debit Uncollectible Accounts Expense, $950.00; credit Allowance for Uncollectible Accounts, $950.00C. Debit Accounts Receivable, $950.00; credit Uncollectible Accounts Expense, $950.00D. Debit Allowance for Uncollectible Accounts, $950.00; credit Uncollectible Accounts Expense, $950.00

Question

Business

Emerson Daugherty

20 February, 06:09

Workman Tools estimates its uncollectible accounts expense for the year to be $950.00. What is the correct entry to record the estimated uncollectible accounts expense?

A. Debit Uncollectible Accounts Expense, $950.00; credit Accounts Receivable, $950.00B. Debit Uncollectible Accounts Expense, $950.00; credit Allowance for Uncollectible Accounts, $950.00C. Debit Accounts Receivable, $950.00; credit Uncollectible Accounts Expense, $950.00D. Debit Allowance for Uncollectible Accounts, $950.00; credit Uncollectible Accounts Expense, $950.00

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Answers (1)

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Lucia · Answer 1

B. Debit Uncollectible Accounts Expense, $950.00; credit Allowance for Uncollectible Accounts, $950.00

Explanation:

The journal entry to record the estimated uncollectible accounts expense is shown below:

Uncollectible accounts expense A/c Dr $950

To Allowance for Uncollectible Accounts $950

(Being the estimated uncollectible accounts expense is recorded)

Since the expense of the Uncollectible account is an expense so this account should be credited and the allowance for Uncollectible Accounts should be credited as it decreases the value of the account receivable