Accounting for Uncollectible Accounts Receivable

Objectives:

 Why does a business allow customers to pay later and why don’t some of them pay?

• You will be able to explain the reason a business will allow customers to buy on account and what are some reasons that businesses cannot collect some of the money due.  

 How does a business record this predicted failure to collect?  

• You will be able to calculate and journalize adjusting entries for uncollectible accounts.  

 What happens when it appears a customer will never pay?

• You will be able to explain "writing off an account".
• You will be able to write off and journalize an uncollectible account

 What happens when a delinquent account is paid?

• You will be able to reopen an uncollectible account and journalize the entries in the general and cash payment  

 You will be able to post all journal entries completed in this chapter.

 Notes