On February 1, a customer's account balance of $2,300 was deemed to be uncollectible. What entry should be recorded on February 1 to record the write-off assuming the company uses the allowance method?
A. Debit Bad Debts Expense $2,300; credit Accounts Receivable $2,300.
B. Debit Accounts Receivable $250; credit Allowance for Doubtful Accounts $2,300.
C. Debit Allowance for Doubtful Accounts $2,300; credit Bad Debts Expense $2,300.
D. Debit Bad Debts Expense $2,300; credit Allowance for Doubtful Accounts $2,300.
E. Debit Allowance for Doubtful Accounts $2,300; credit Accounts Receivable $2,300.
Answer: E
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