What general ledger account is debited to write off a customer's account as uncollectible if using the allowance method for uncollectible receivables?
A) Bad Debts Expense
B) Accounts Receivable
C) Allowance for Doubtful Accounts
D) Bad Debts Recovered

Question

Quizplus · Accepted Answer

When using the allowance method for uncollectible receivables, the "Allowance for Doubtful Accounts" account is debited to write off a customer's account as uncollectible. This method involves estimating the amount of bad debt expense in advance and creating an allowance for doubtful accounts to offset the accounts receivable balance. When an account is deemed uncollectible, the allowance account is debited, and accounts receivable is credited, with no impact on the income statement at the time of the write-off.

What General Ledger Account Is Debited to Write Off a Customer's