Question

Receivables not expected to be collected should Multiple choice question. not be counted in assets of the company. always be counted in assets of the company. initially be included as assets and then be written off when the customer does not pay.

Answer 1

Receivables not expected to be collected should not be counted in assets of the company.

Accounts Not Receivable

For bookkeeping purposes, When a company confirms that it is likely not to receive payment,  it should be written off in the journal entries as a debit to allowance for doubtful accounts and then credited to accounts receivable.

Account Not Receivable or collected is regarded as bad debt expense.

Therefore Receivables not expected to be collected are not  to be counted in assets of the company.

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