Post Utme Rhema University 2024 Accounting Question 21

Practice objective / multiple choice question 21 from the 2024 Post Utme Rhema University Accounting examination.

Post Utme Rhema University 2024 Accounting Objective / Multiple Choice
Question 21 POST_UTME_RHEMA_UNIVERSITY • 2024 • ACCOUNTING • objective

A company's balance sheet shows a current asset of ₦100,000 in the 'Accounts Receivable' account. However, the company's accounting records show that it has written off ₦20,000 of the accounts receivable as uncollectible. What is the correct journal entry to record the write-off?

Answer Options

Correct Answer A. Debit Allowance for Doubtful Accounts ₦20,000, Credit Accounts Receivable ₦20,000
B. Debit Bad Debt Expense ₦20,000, Credit Allowance for Doubtful Accounts ₦20,000
C. Debit Allowance for Doubtful Accounts ₦20,000, Credit Bad Debt Expense ₦20,000
D. Debit Accounts Receivable ₦20,000, Credit Allowance for Doubtful Accounts ₦20,000
Correct Answer
A
Correct Option:
Debit Allowance for Doubtful Accounts ₦20,000, Credit Accounts Receivable ₦20,000

About This Question

This is Post Utme Rhema University 2024 Accounting Question 21. It is one of the objective questions from the 2024 Post Utme Rhema University Accounting examination.

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