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Avia Company determines that a customer balance of $400 from Allia, Inc. is uncollectible. Avia uses the allowance method to
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Answer #1

Avia uses the allowance method to account for bad debts. the entry to write off the uncollectible balance will be as under :

Journal

Account Title and Explanation

Debit

Credit

Allowance for doubtful accounts 400
Accounts receivable - Allia 400

Hence, Third option is the correct option.

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