Which term is used for a balance that has been deemed uncollectible and removed from expected accounts receivable?

• A. bad debt
• B. uncollectible
• C. write-off
• D. delinquent account

Answer: (A)

When a balance is judged uncollectible and taken out of expected accounts receivable, the amount is referred to as bad debt. This is the standard label for an receivable that will not be collected and is recognized as a loss on the income statement, with the balance reduced on the balance sheet. Writing off is the action you take to remove that uncollectible amount from records—reducing accounts receivable and, depending on the method, offsetting it against the allowance for doubtful accounts or recognizing a bad debt expense. Delinquent accounts are simply past-due, not necessarily uncollectible, and “uncollectible” is a descriptive term, but the conventional noun used for the uncollectible balance itself is bad debt.