When does an account become uncollectible?
A)when accounts receivable is converted into notes receivable
B)when a discount is availed on notes receivable
C)there is no general rule for when an account becomes uncollectible
D)at the end of the fiscal year

Question

Quizplus · Accepted Answer

There is no general rule for when an account becomes uncollectible. It depends on various factors such as the creditworthiness of the customer, the age of the account, economic conditions, etc. A company may have to write off an account as uncollectible if they believe that it is unlikely to be collected in the future.

When Does an Account Become Uncollectible