What is the appropriate account to credit when estimating a portion of health care entity's receivables that will prove to be uncollectible?
A) Provision for Bad Debts.
B) Allowance for Uncollectible and Reduced Accounts.
C) Patient Service Revenues.
D) Accounts Receivable.
E) Contractual Adjustments.

Question

Quizplus · Accepted Answer

The Allowance for Uncollectible and Reduced Accounts is credited to estimate the portion of receivables that will not be collected, reflecting the anticipated losses from uncollectible accounts.

What Is the Appropriate Account to Credit When Estimating a Portion