If a Company Uses the Direct Write-Off Method of Accounting

question 93

Multiple Choice

If a company uses the direct write-off method of accounting for bad debts:

• A) it establishes an estimate for the allowance for doubtful accounts.
• B) it will record bad debt expense only when an account is determined to be uncollected.
• C) it will reduce the accounts receivable account at the end of the accounting period for estimated uncollected accounts.
• D) total assets will stay the same, when an account is written off.

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Definitions:

Trochlear Nerves

The fourth cranial nerves, primarily responsible for eye movement, specifically controlling the superior oblique muscle.

Trigeminal Nerves

Cranial nerves responsible for sensory information in the face and motor functions such as biting and chewing.

Abducens Nerves

Cranial nerves responsible for controlling the movement of a muscle that abducts the eye.

Cluster Headaches

A neurological disorder characterized by recurrent, severe headaches on one side of the head, often around the eye.