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Under the allowance method for uncollectible accounts, bad debt expense increases, while allowance for doubtful accounts decreases when writing off an uncollectible account. the bad
Under the allowance method for uncollectible accounts, bad debt expense increases, while allowance for doubtful accounts decreases when writing off an uncollectible account. the bad debts expense is not recorded until there is proof of a customer default. the entry to write off an uncollectible account only involves statement of financial position accounts. the allowance for doubtful accounts increases, while accounts receivables decrease when writing off an uncollectible account
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