Accounts written off

Accounts written off are those invoices to customers that are considered uncollectible, and which have therefore been removed from the accounts receivable account. Doing so reduces the accounts receivable report to just those customer invoices that are considered to be collectible. Accounts are written off by debiting either the allowance for doubtful accounts or the bad debt expense account, and crediting the accounts receivable account.

Related Courses

Bookkeeping Guidebook 
Credit and Collection Guidebook