Question

It is not necessary to journalize uncollectible account receivables.right or wrong ...right or wrong ?

Answer 1

The given statement is Wrong

Working

Uncollectibe account receivables should be journalized.

There are two ways Uncollectibe account receivables can be journalized:

1) Direct write off method - where uncollectible accounts are reduced from the total receivables balance and a corresponding amount goes to bad debt expense.

2) Allowance method - where uncollectible accounts are reduced from the Allowance for doubtful debts account and a corresponding amount goes to bad debt expense.

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