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:

Daily Interest Rate

The interest rate applied to a loan or investment for a single day, often used for calculating interest over short periods.

Cheques

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer.