With respect to the write-off of an uncollectible account, Ask an Expert

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With respect to the prepare-off of an uncollectible account receivable against the allowance for bad debts, a sound system of internal control would require:

A. the prepare-off be approved by two employees.

B. an investigation of why credit was extended to this customer in the first place.

C. a lawsuit to be initiated to recover the uncollectible amount.

D. the prepare-off to be made within six months after the date of sale.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M941427

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