When $2,500 of accounts receivable are determined to be uncollectible, which of the following should the company record to write off the accounts using the allowance method?a. A debit to Bad Debt Expense and a credit to Allowance for Uncollectible Accounts. b. A debit to Allowance for Uncollectible Accounts and a credit to Bad Debt Expense. c. A debit to Bad Debt Expense and a credit to Accounts Receivable. d. A debit to Allowance for Uncollectible Accounts and a credit to Accounts Receivable.

d. A debit to Allowance for Uncollectible accounts and a credit to accounts receivable

Explanation:

In an entity using the allowance method all write offs of receivables are routed through the allowance account.

The allowance account is credited with the estimated amount of uncollectible accounts and the bad debts expense account is debited.

When an account receivable is written off it is debited to the allowance for uncollectible accounts is debited and receivable accounts is credited.

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