Question

Good internal controls over the write-off of uncollectible accounts include appropriate review of ________ by management to ensure the appropriateness of the transaction.

Answer 1

Answer: c. cash receipts journal

Explanation:

Good internal controls over the write-off of uncollectible accounts include the company reviewing the cash receipts journal to ensure that the uncollectible accounts should indeed be uncollectible by making sure that the customer has not paid their balance.

This is because there is a chance of fraud if the cash receipts are not checked as an employee might take the cash paid by a receivable and then record that the receivable is uncollectible.