If the allowance method of accounting for doubtful receivables is used, what account is credited in the entry to write off a customer's account as uncollectible?
A)allowance for doubtful accounts
B)accounts receivable
C)bad-debt expense
D)sales returns and allowances

Question

Quizplus · Accepted Answer

When using the allowance method, the entry to write off an account as uncollectible involves debiting the Allowance for Doubtful Accounts and crediting Accounts Receivable. This reflects the removal of the receivable from the books, without impacting the current period's income statement, as the expense was previously estimated and recorded.

If the Allowance Method of Accounting for Doubtful Receivables Is