Question

When does an account become uncollectible?
Oa. when a discount is available on notes receivable
Ob. at the end of the fiscal year
Oc. There is no general rule for when an account becomes uncollectible
Od. when accounts receivable is converted into notes receivable

Answer 1

Answer:

C. There is no general rule for when an account become uncollectable

Explanation:

Accounts uncollectible are receivables, loans, or other debts that have virtually no chance of being paid. An account may become uncollectible for many reasons, including the debtor's bankruptcy, an inability to find the debtor, fraud on the part of the debtor, or lack of proper documentation to prove that debt exists.