An account for which the practice has exhausted all of its collection efforts and the patient's balance is still unpaid is labeled a(n) ___ account.

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Multiple Choice

An account for which the practice has exhausted all of its collection efforts and the patient's balance is still unpaid is labeled a(n) ___ account.

When all reasonable collection efforts have been exhausted and the balance remains unpaid, the account is considered uncollectible. This label signals that the practice does not expect to receive payment and will typically move the amount into bad debt for financial reporting. The action of actually removing the receivable from active accounts is called a write-off, which is the step taken after deeming an account uncollectible. A dormant account implies no recent activity rather than an expectation of nonpayment. So the best fit for the status of an unpaid balance after efforts are exhausted is uncollectible.

When all reasonable collection efforts have been exhausted and the balance remains unpaid, the account is considered uncollectible. This label signals that the practice does not expect to receive payment and will typically move the amount into bad debt for financial reporting. The action of actually removing the receivable from active accounts is called a write-off, which is the step taken after deeming an account uncollectible. A dormant account implies no recent activity rather than an expectation of nonpayment. So the best fit for the status of an unpaid balance after efforts are exhausted is uncollectible.

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