Credit Entry to Allowance for Uncollectible Accounts

Credit Entry to Allowance for Uncollectible Accounts

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A credit entry to Allowance for Uncollectible Accounts

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Allowance for Uncollectible Accounts, sometimes referred to as Bed Debt Reserve, is a contra account to Accounts Receivable. A credit entry increases its balance and the balance reduces the amount of net Accounts Receivable.