Nigel Lighting Uses the Direct Charge-Off Method of Recording Bad

question 30

Multiple Choice

Nigel Lighting uses the direct charge-off method of recording bad debts.On Sept.4,the $300 account balance of Louis Blue was charged off.However,on November 15,Blue paid $70 of the amount previously written off.The entry to record the payment from Blue would include:

• A) debit Accounts Receivable $300;credit Uncollectible Account Expense $300
• B) debit Allowance for Doubtful Accounts $70;credit Accounts Receivable $70
• C) debit Uncollectible Account Expense $70;credit Cash $70
• D) debit Cash $70;credit Accounts Receivable $70

---

Definitions:

Divergent

Refers to thinking or strategies that explore multiple possible solutions in order to generate creative responses to complex problems.

Predictive

Relating to the ability to make predictions about future events based on current or past data.

Established Measures

Metrics or standards that have been widely adopted and accepted for evaluating performance, quality, or attainment.

Split Half

A reliability measure where a test is divided into two parts and the scores for each are correlated with one another to assess consistency.