To Write Off an Uncollectible Account Receivable When the Allowance

question 16

Short Answer

To write off an uncollectible account receivable when the allowance method of accounting for uncollectible accounts is used, a company should debit ________ and credit accounts receivable.

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Definitions:

Marginal Utility

The additional satisfaction or utility that one receives from consuming one more unit of a good or service.

Donut

A fried dough confection or dessert food, usually ring-shaped or without a hole and filled with various sweet fillings or toppings.

Total Utility

The total satisfaction or benefit received from consuming a particular quantity of a good or service.

Donuts

A sweet, fried or baked pastry, often circular with a hole in the middle, available in various flavors and toppings.