Asked by Baddie Curtis Brown on May 05, 2024
Verified
An example of a bad debt ____________ would be if a patient owes the office $200 and the patient dies unexpectedly,leaving the remaining balance of $200 uncollectible.
A) write-down
B) write-off
C) non-collection
D) forgiveness
Bad Debt
Money that has been lent or credited but is unlikely to be repaid and is therefore considered a loss.
Write-off
An accounting practice where the value of an asset is reduced to zero, reflecting its irrecoverability.
Write-down
An accounting term referring to the reduction in the book value of assets when their fair market value has fallen below the previously recorded cost.
- Understand the concept and necessity of bad debt management within medical practices.
Verified Answer
YA
Yohannes AlemnehMay 05, 2024
Final Answer :
B
Explanation :
A bad debt write-off occurs when a receivable amount is deemed uncollectible, such as when a patient dies and cannot pay the owed amount.
Learning Objectives
- Understand the concept and necessity of bad debt management within medical practices.