Asked by Imani Devaughn on Apr 26, 2024

verifed

Verified

The Accounts Receivable subsidiary ledger is:

A) updated when a debt is identified as uncollectible.
B) credited when a debt is identified as uncollectible.
C) debited when a debt is identified as uncollectible.
D) Both A and B

Subsidiary Ledger

A ledger that contains accounts of a single type. Example: The accounts receivable subsidiary ledger records all credit customers.

Uncollectible

Refers to accounts receivable that are unlikely to be recovered from debtors.

Debited

An accounting term describing an entry that increases an asset or expense account, or decreases a liability or equity account.

  • Pinpoint and group varied account types evident in financial records.
verifed

Verified Answer

HW
Hailei WilsonMay 01, 2024
Final Answer :
D
Explanation :
When a debt is identified as uncollectible, the Accounts Receivable subsidiary ledger is updated to reflect this change, and the specific account within the ledger is credited to decrease the amount owed, reflecting the write-off of the uncollectible debt.