You have just received notice that a customer of yours with an Account Receivable balance of $100 has gone bankrupt and will not make any future payments. Assuming you use the allowance method, the entry you make is to

Allowance for Doubtful Debts    $100 Dr

   Accounts Receivable                     $100 Cr

Explanation:

Under the allowance method of recording the bad debts, we usually assign a certain percentage to the accounts receivable amount every year as being doubtful and record the bad debt expense over this allowance account. This means that we record an entry debiting bad debt expense and crediting allowance for doubtful debts using our estimation for every year.

When an accounts receivable is confirmed to have gone bad, we do not need to record bad debt expense. Rather we just debit the allowance for doubtful debts account and credit the accounts receivable account as the allowance was already made against recording the bad debt expense. Thus, the entry would be to debit the allowance account and credit the accounts receivable account.

when consumers have more money to pay for a product, the most likely situation to occur from the possible options on the list is (2) an increase in price for computer and computer accessories will happen.

companies tend to price products according to production costs, but they also take into account how much money would a consumer in certain segments be willing to pay for their product. if they have more money, the products would definitely be priced higher.