When an Account Becomes Uncollectible and Must Be Written Off

question 59

Multiple Choice

When an account becomes uncollectible and must be written off,

• A) Allowance for Doubtful Accounts should be credited.
• B) Accounts Receivable should be credited.
• C) Bad Debts Expense should be credited.
• D) Sales should be debited.

---

Definitions:

Maxim

A concise and general principle or rule of conduct, often serving as a guideline for behavior.

Hypotheticals

Hypotheticals refer to situations or scenarios that are imagined or speculated about, often used in reasoning or in discussing possible outcomes.

Principle

A basic principle or statement that forms the basis for a belief system or for logical thinking.

Rational

The quality of being based on or in accordance with reason or logic, often related to the ability to think, understand, and form judgments by a process of logic.