Barometer Banten

SOLVED: Under the allowance method for uncollectible accounts,bad debt expense increases, while the allowance for doubtful accounts decreases when writing off an uncollectible account The allowance for doubtful accounts increases, while accounts receivable decreases when writing off an uncollectible account. Bad debt expense is not recorded until a customer defaults.The entry to write off an uncollectible account only involves income statement accounts.

Berita|oleh

In the case of the allowance for doubtful accounts, it is a contra account that is used to reduce the Controlling account,