A Company Uses the Direct Write-Off Method and Discovers a Customer's

question 42

Multiple Choice

A company uses the direct write-off method and discovers a customer's account in the amount of $3,000 will not be paid because the customer has declared bankruptcy.What is the journal entry that would be made to record this write-off?

• A)Option A
• B)Option B
• C)Option C
• D)Option D

---

Definitions:

Teratogen

Any agent or factor that can cause malformation of an embryo or fetus, which includes certain chemicals, drugs, and infections.

Artificial Sweetener

Substances used to sweeten foods and beverages that contain little to no calories, used as an alternative to sugar for weight control or diabetes management.

Fetus

a developing mammal or human from the end of the embryonic stage until birth.

Habituation

A psychological learning process wherein there is a decrease in response to a stimulus after being repeatedly exposed to it.