QUESTION 3 At year-end, Shifty Ltd had a balance of accounts receivable of $90 000 and an allowance for doubtful debts of $4000. It was decided to write off the debt of Wriggler, totalling $2500, as...

Extracted text: QUESTION 3 At year-end, Shifty Ltd had a balance of accounts receivable of $90 000 and an allowance for doubtful debts of $4000. It was decided to write off the debt of Wriggler, totalling $2500, as irrecoverable. It was further decided that the allowance for doubtful debts should stand at 5% of accounts receivable What was the journal entry needed to write off the debt of Wriggler as irrecoverable? O A. DR Bad debts expense S2500 CR Accounts receivable $2500 B. DR Bad debts expense S2500 CR Cash S2500 OC. DR Bad debts expense $2500 CR allowance for doubtlul debts S2500 D. DR Allowance for doubuful debts $2500 CR Accounts receivable $2500