Unformatted text preview: determining that an account balance is uncollectible, a company generally makes several attempts to collect the debt from the customer. Recognizing the bad debt requires a journal entry that increases a bad debts expense account and decreases accounts receivable. If a customer named J. Smith fails to pay a $225 balance, for example, the company records the write-off by debiting bad debts expense and crediting accounts receivable from J. Smith....
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- Fall '10