Using the allowance method, the correct adjusting journal entry to record bad debt expense is:
Debit Bad Debt Expense
Credit Allowance for Doubtful Accounts.
Bad debt expense can be define as the amount a company or organization assume are uncollectible because they felt the customer or client they loan would never pay back debt amount loan to them.
The appropriate adjusting journal entry to record bad debt expense is:
Debit Bad Debt Expense
Credit Allowance for Doubtful Accounts
(To record bad debt expense)
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