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When using the allowance method of accounting for uncollectible accounts, the recovery of a bad debt would be recorded as a debit to Cash and a credit to Bad Debts Expense. a. True b. False
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When using the allowance method of accounting for uncollectible accounts, the recovery of a bad debt would be recorded as a debit to Cash and a credit to Bad Debts Expense.

a. True
b. False

User Christian Landgren
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Answer: False

Step-by-step explanation:

A bad debt is a debt that is unlikely to be paid by the debtor and hence, the company has already written it off as the creditor is not ready to collect it anymore.

The information provided in the question is not correct. When using the allowance method of accounting for uncollectible accounts, the recovery of a bad debt would be to debit the accounts receivable and credit the allowance for doubtful debts.

User Kevin Mangold
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