The two accounts used to adjust the uncollectible accounts are.
A) Uncollectible Accounts Expense and Allowance for Uncollectible Accounts.
B) Accounts Receivable and Uncollectible Accounts Expense.
C)Accounts Receivable and Allowance for Uncollectible Accounts
D)Accounts Receivable and Accounts Receivable Expense.
answer is B?
answer is A
To determine the correct answer, let's break down the options and understand the purpose of each account.
A) Uncollectible Accounts Expense: This account is used to record the estimated bad debts or uncollectible accounts. It represents the expense incurred by a company due to customers not paying their outstanding balances.
Allowance for Uncollectible Accounts: This account is a contra-asset account that is used to reduce the accounts receivable account to its net realizable value. It represents the amount of accounts receivable that the company estimates to be uncollectible.
B) Accounts Receivable: This account represents the amount of money owed to a company by its customers for goods or services provided on credit. It is an asset that reflects the company's right to receive payment in the future.
Uncollectible Accounts Expense: As mentioned earlier, this account is used to record the estimated bad debts or uncollectible accounts.
C) Accounts Receivable: Same as option B, representing the amount owed by customers.
Allowance for Uncollectible Accounts: Same as option A, representing the company's estimate of uncollectible accounts.
D) Accounts Receivable: Same as options B and C, representing the amount owed by customers.
Accounts Receivable Expense: This account does not typically exist, as it seems to be a combination of "Accounts Receivable" and "Expense" accounts. It is not commonly used in the context of adjusting uncollectible accounts.
Considering the explanation, the correct answer would be C) Accounts Receivable and Allowance for Uncollectible Accounts. These two accounts are used to adjust the uncollectible accounts.