What term describes an amount determined to be uncollectible?

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Multiple Choice

What term describes an amount determined to be uncollectible?

Uncollectible portions of accounts receivable are called bad debt. This term identifies the portion of a patient or customer balance that the organization does not expect to collect. The amount is recorded as a bad debt expense and, if needed, offset against an allowance for doubtful accounts before it’s written off. Writing off is the action of removing the receivable from the books after it’s deemed uncollectible, rather than the term for the amount itself. The other options are descriptors or actions, not the standard term for the uncollectible amount.

Uncollectible portions of accounts receivable are called bad debt. This term identifies the portion of a patient or customer balance that the organization does not expect to collect. The amount is recorded as a bad debt expense and, if needed, offset against an allowance for doubtful accounts before it’s written off. Writing off is the action of removing the receivable from the books after it’s deemed uncollectible, rather than the term for the amount itself. The other options are descriptors or actions, not the standard term for the uncollectible amount.

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