When an account is determined to be uncollectible, "writing off" the bad debt usually involves:

A) reducing the receivables balance and the bad debt reserve by the amount of the account.
B) writing a letter to the customer demanding payment.
C) "expensing" the amount deemed uncollectible.
D) All of the above

Writing Off

The process of recognizing that an asset has lost value or a debt is uncollectible and reflecting this in the accounting records.

Bad Debt

Money owed to a company that is unlikely to be paid by the debtor, often leading to a financial loss for the company.

Receivables Balance

The total amount of money owed to a company by its customers for goods or services delivered on credit.