Answer:
B.
Explanation:
An uncollectible account or bad debt is an account receivable that the business cannot collect. Businesses account for bad debts by using :
-the allowance method.
-the direct write-off method .
The direct write-off method is primarily used by businesses with few credit customers. When it is determined that a customer is not going to pay, the uncollectible account is removed from the records.
To remove from the records, there is a credit to Accounts Receivable (asset account, increase by the debit) and a debit to Bad Debts Expense (expense account, increase by the debit).
