Writing off an uncollectible account involves
A)a debit to Bad Debts Expense.
B)a debit to Allowance for Doubtful accounts.
C)a debit to Sales Returns and Allowances.
D)a debit to Accounts Receivable.

Question

Quizplus · Accepted Answer

Writing off an uncollectible account involves reducing the Accounts Receivable balance by debiting Allowance for Doubtful accounts. This method of estimating and accounting for bad debts is called the allowance method. A debit to Bad Debts Expense is made when estimating the amount of bad debt expense for a period, not when actually writing off the account. A debit to Sales Returns and Allowances is made for items customers return or when they receive a price reduction. A debit to Accounts Receivable is made when recording a sale or when adjusting for an overstatement of Accounts Receivable.

Writing Off an Uncollectible Account Involves