If the Allowance Method of Accounting for Uncollectible Receivables Is

question 170

Multiple Choice

If the allowance method of accounting for uncollectible receivables is used, what general ledger account is debited to write off a customer's account as uncollectible?

• A) Uncollectible Accounts Expense
• B) Allowance for Doubtful Accounts
• C) Accounts Receivable
• D) Interest Expense

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Definitions:

Tax Bases

The total amount of assets or income that can be taxed by a government, forming the foundation for calculating tax liabilities.

Services

Intangible products or actions that provide value to consumers, differing from goods which are physical items.

Federal Government

The national government of a federal country, which shares sovereignty with constituent states or provinces, responsible for governing national matters.

Social Security Tax

A tax levied on both employers and employees to fund the Social Security program, which provides benefits for retirees, the disabled, and children of deceased workers.