Question

The operating expense recorded from uncollectible receivables can be called all of the following except

Answer 1

Answer:

d .Accounts Receivable

Explanation:

Accounts receivables are amounts that a business expects to receive from its customers for goods and services sold on credit. In many instances, customers do not pay for deliveries immediately. In practice, a 30- 60 days credit period is allowed. Within this period, the customer is expected to make full payments for the goods.

In accounting, these expected payments are recorded as accounts receivables.

Should customers fail to make payments against account receivables, they convert to bad debts or uncollectable debts.

In summary, bad debts, uncollectable debts, and doubtful debts were initially accounts receivables. They changed status due to non-payments by customers.