When losses from uncollectible accounts are provided for in advance,the entry to record the write-off of a particular customer's account includes a debit to Uncollectible Accounts Expense.

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When losses from uncollectible accounts are provided for in advance, the entry to record the write-off of a particular customer's account should include a credit to the Allowance for Doubtful Accounts or Bad Debt Reserve account and a debit to Accounts Receivable. This reduces the balance in the Accounts Receivable account and recognizes the fact that the amount owed by the customer is unlikely to be collected. The debit to Uncollectible Accounts Expense is made only when the actual bad debt expense is incurred, such as at the end of an accounting period when the allowance for doubtful accounts is adjusted based on the estimated percentage of uncollectible accounts.

When Losses from Uncollectible Accounts Are Provided for in Advance,the