When accounts are reported as uncollectable and returned to the provider by the collection agency,

a$.$

The account is simply written off as bad debt

b$.$

The default is reported to consumer credit agencies creating a downgrade in the debtor's credit worthiness rating

c$.$

The provider may enter into litigation to collect the amount due

d$.$

The provider$$s policies are followed to ensure that the bad debt expense and allowance for uncollectable accounts correctly reflect the status of these returned accounts