use the analysis of receivables to account for the following: total accounts rec

Question

use the analysis of receivables to account for the following:

total accounts receivable is $2, 250. it has been determined by the company that$600 of that total is uncollectible. the entry for provision for doubtful accounts would indicate:
a) addition to accounts receivable and addition to allowance for doubful accounts

b)bad debt expense goes up and accounts receivables goes down

c) bad debt expense and allowance for doubtful acct goes up

d) accounts receivable and allowance for doubful accts goes down

Explanation / Answer

Answer is C

bad debt expense and allowance for doubtful acct goes up.

As it is clear that entry should be a provision for doubt ful debts we should credit that instead of accounts receivable

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