Carrington Company uses the allowance method for recording bad debts. On February 1, Carrington wrote off a $3,500 customer account balance when it became clear that the particular customer would never pay. On May 29, Carrington unexpectedly received a check for $3,500 from the customer. On May 29, Carrington will: A. Debit Allowance for Doubtful Accounts and credit Accounts Receivable for $3,500; debit Cash and credit Bad Debt Expense for $3,500. B. Debit Allowance for Doubtful Accounts and credit Bad Debt Expense for $3,500; debit Cash and credit Accounts Receivable for $3,500. C. Debit Accounts Receivable and credit Allowance for Doubtful Accounts for $3,500; debit Cash and credit Accounts Receivable for $3,500. D. Debit Cash and credit Bad Debt Expense for $3,500; debit Accounts Receivable and credit Allowance for Doubtful Accounts for $3,500.

C. Debit Accounts Receivable and credit Allowance for Doubtful Accounts for $3,500; debit Cash and credit Accounts Receivable for $3,500.

Explanation:

The journal entry is given below:

Account receivable Dr $3,500

       To allowance for doubtful debts $3,500

(being the account receivable is recorded)

Here account receivable is debited as it increased the assets and credited the allowance as it decreased the assets

Cash dr $3,500

   To account receivable $3,500

(being collection is recorded)

Here cash is debited as it increased the assets and credited the account receivable as it decreased the assets

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.