When $2,500 of Accounts Receivable Are Determined to Be Uncollectible,which

question 65

Multiple Choice

When $2,500 of accounts receivable are determined to be uncollectible,which of the following should the company record to write off the accounts using the allowance method?

• A)A debit to Bad Debt Expense and a credit to Allowance for Uncollectible Accounts.
• B)A debit to Allowance for Uncollectible Accounts and a credit to Bad Debt Expense.
• C)A debit to Bad Debt Expense and a credit to Accounts Receivable.
• D)A debit to Allowance for Uncollectible Accounts and a credit to Accounts Receivable.

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Definitions:

Financial Obligation

A legal commitment to fulfill a financial payment or service, including debts, contracts, and transactions.

Governmental Fund

A type of fund used in governmental accounting that focuses on the sources, uses, and balances of governmental financial resources, excluding proprietary and fiduciary activities.

Fund Financial Statements

Financial reports that detail the income, expenditures, and other financial activities of a specific fund within an organization.

Facility Closure

The process of permanently shutting down operations at a business location, often involving asset disposal and employee layoffs.