Which of the following entries would be used to account for uncollectible receivables using the allowance method?
A) Allowance for uncollectible accounts is debited and Uncollectible accounts expense is credited.
B) Uncollectible accounts expense is debited and Allowance for uncollectible accounts is credited.
C) Uncollectible accounts expense is debited and Accounts receivable is credited.
D) Accounts receivable is debited and Uncollectible accounts expense is credited.

Question

Quizplus · Accepted Answer

The allowance method involves estimating the amount of uncollectible accounts and creating a contra asset account called Allowance for Uncollectible Accounts. When an account is deemed to be uncollectible, the amount is written off as an expense called Uncollectible Accounts Expense. Therefore, the entry to account for uncollectible receivables using the allowance method would be to debit Uncollectible Accounts Expense and credit Allowance for Uncollectible Accounts. Option B is the correct choice as it reflects this entry.

Which of the Following Entries Would Be Used to Account