Allowance for Doubtful Accounts is credited when an account is determined to be uncollectible.

Name: Allowance for Doubtful Accounts is credited when an account is determined to be uncollectible.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Allowance for Doubtful Accounts is credited when estimating future uncollectible accounts, not when a specific account is determined to be uncollectible. When an account is deemed uncollectible, the specific allowance is debited, and the accounts receivable is credited to write off the account.

Allowance for Doubtful Accounts Is Credited When an Account Is