When a specific customer's account is identified as uncollectible, it is written off against the balance in the allowance for bad debts account. For example, J. Smith's uncollectible balance of $225 is removed from the books by debiting allowance for bad debts and crediting accounts receivable.
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This note was uploaded on 11/14/2011 for the course ACCT 1310 taught by Professor Staff during the Fall '10 term at Texas State.