Once an accounts receivable is written off ________.
A) the account must be turned over to a collection agency
B) the company continues to pursue the collection
C) the company still expects to be paid
D) the customer's accounts receivable is removed from the books

Question

Quizplus · Accepted Answer

When an accounts receivable is written off, it means that the company has deemed it unlikely that the customer will pay, and the customer's accounts receivable is removed from the books. The company may still attempt to collect the debt, but it is no longer recorded as an accounts receivable. The other options are not accurate: the account does not have to be turned over to a collection agency, the company typically stops actively pursuing the collection once it is written off, and the company does not expect to be paid if it has written off the debt.

Once an Accounts Receivable Is Written Off ________