When does an account become uncollectible?

Question

Quizplus · Accepted Answer

There is no general rule for when an account becomes uncollectible. The determination of when an account is considered uncollectible depends on various factors such as the history of the debtor, the amount owed, and the company's collection efforts. It is typically based on management's judgement and may vary from company to company. Choices A and B are situations where a specific account may become uncollectible, but they are not the only criteria. Choice D is not a valid criterion for determining when an account becomes uncollectible.

When Does an Account Become Uncollectible