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When using the direct write-off method off accounting for uncollectible receivables, the account Allowance for Doubtful Accounts is debited when a specific account is determined to be uncollectible. True or False

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Answer:

False

Step-by-step explanation:

Allowance for Doubtful Accounts account is a contra asset account. In this case it would lower the value Accounts Receivable account.

So when you use the write-off method for uncollectible receivables, the account Allowance for Doubtful Accounts is CREDITED. When an asset decreases, it should be credited.

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