When does an account become uncollectible?
A) when accounts receivable is converted into notes receivable
B) when a discount is available on notes receivable
C) there is no general rule for when an account becomes uncollectible
D) at the end of the fiscal year

Question

Quizplus · Accepted Answer

There is no general rule for when an account becomes uncollectible. The decision to label an account as uncollectible is based on factors such as the age of the account, creditworthiness of the customer, and attempts made to collect the amount due.

When Does an Account Become Uncollectible