Under the Direct Write-Off Method,the Entry to Write Off a Customer's

question 83

Multiple Choice

Under the direct write-off method,the entry to write off a customer's account would be:

• A)Debit Bad Debt Expense,credit Allowance for Doubtful Accounts.
• B)Debit Bad Debt Expense,credit Accounts Receivable.
• C)Debit Write-off Expense,credit Accounts Receivable.
• D)Debit Sales,credit Accounts Receivable.

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Definitions:

Capital Components

The different sources of capital, including debt, equity, and any other forms of financing a company uses to fund its operations and growth.

Component Costs Of Capital

The individual costs of capital that a company incurs from each of its sources of funding, such as equity, debt, and preferred stock.

Effective Cost Of Capital

The actual cost of a company's funding after adjusting for various factors, including tax benefits, associated with different sources of capital.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, providing a measure that reflects the significance of each value.