With respect to the write-off of an uncollectible account receivable against the Allowance for Bad...

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Accounting

With respect to the write-off of an uncollectible account receivable against the Allowance for Bad Debts account, a sound system of internal control would require:
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the write-off be approved by two employees.
an investigation of why credit was extended to this customer in the first place.
the write-off to be made within six months after the date of sale.
a lawsuit to be initiated to recover the uncollectible amount.
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