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26 July, 01:14

If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer's account as uncollectible? A. Uncollectible Accounts ExpenseB. Accounts ReceivableC. Allowance for Doubtful AccountsD. Interest Expense

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  1. 26 July, 01:31
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    Option B) Accounts Receivable

    Explanation:

    In the Direct write-off method the company registered an entry that debit Bad Debts Expense and an credit entry in the Accounts Receivable.

    In this method doesn't exist a contra asset account such as Allowance for Doubtful Accounts, the Bad Debt Expenses are reported on the Income Statement one year later of the sale.
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