What is the appropriate account to credit when estimating a portion of receivables that will prove to be uncollectible?

Question

Quizplus · Accepted Answer

The appropriate account to credit when estimating a portion of receivables that will prove to be uncollectible is the Allowance for Uncollectible Accounts. The offsetting entry is a debit to Bad Debt Expense, which represents the amount of estimated uncollectible receivables for the period. This is in accordance with the matching principle, which requires expenses to be recognized in the same period as the revenue they relate to.

What Is the Appropriate Account to Credit When Estimating a Portion