Final answer:
When someone who owes money to a company files for bankruptcy, the Accounts Receivable account is debited because the money will never be received.
Step-by-step explanation:
When a company is owed money by someone who files for bankruptcy, the account that is debited is the Accounts Receivable account.
Accounts Receivable is an asset account that represents the amount of money that the company is owed to its customers. When a customer files for bankruptcy and it becomes evident that the company will not receive the money, the Accounts Receivable account is debited to reflect the loss.
For example, let's say Company XYZ had a customer who owed them $10,000. If the customer files for bankruptcy and it is determined that Company XYZ will never receive the money, the Accounts Receivable account will be debited by $10,000 to reflect the loss.