Under the allowance method of accounting for uncollectible accounts, the entry to write off an account that is determined to be uncollectible includes a debit to bad-debt expense.

Question

Quizplus · Accepted Answer

Under the allowance method, the entry to write off an account includes a debit to the Allowance for Doubtful Accounts and a credit to Accounts Receivable, not a debit to Bad Debt Expense.

Under the Allowance Method of Accounting for Uncollectible Accounts, the Entry