Question: Your Co uses the allowance method and has a $7,000 credit balance in allowance for doubtful accounts. If Dead Beat Co. skips town owing Your

Your Co uses the allowance method and has a $7,000 credit balance in allowance for doubtful accounts. If Dead Beat Co. skips town owing Your co. $500, what journal entry is required? O Cr. Allowance for Doubtful Accounts $500 o Dr. Bad Debt Expense $500 O Dr. A/R $500 O Dr. Allowance Doubtful Accounts $500 o Cr. A/R $7,000

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