The journal entry to write off an account judged to be uncollectible under the allowance would include a credit to:
A)Sales.
B)Accounts Receivable.
C)Allowance for Doubtful Accounts.
D)Bad Debts Expense.

Question

Quizplus · Accepted Answer

When an account is deemed uncollectible and is written off under the allowance method, the entry should include a debit to the allowance for doubtful accounts and a credit to accounts receivable. This reduces the balance in accounts receivable to reflect the fact that the company no longer expects to receive payment for this particular customer. Option A is incorrect because sales are not affected by the write-off of a bad debt. Option C is incorrect because the allowance for doubtful accounts has already been established and would only be adjusted through periodic estimates, not through specific write-offs. Option D is incorrect because Bad Debts Expense is only used to record estimated losses on accounts receivable, not actual write-offs.

The Journal Entry to Write Off an Account Judged to Be