The Direct Write-Off Method for Bad Debts

question 18

Multiple Choice

The Direct Write-off Method for bad debts:

• A)Complies with GAAP
• B)Removes a customer's uncollectible account receivable and records a bad debt expense and is recorded at the time a specific customer's account becomes uncollectible
• C)Estimates bad debt expense and establishes an allowance or reserve for uncollectible
• D)None of the choices are correct

---

Definitions:

Introversion

A personality trait characterized by a focus on internal feelings rather than external sources of stimulation.

Self-concept

An individual's perception of themselves, encompassing beliefs, feelings, and thoughts about one's identity and personal qualities.

Ideal Self-concept

Ideal self-concept pertains to how individuals would like to see themselves, embodying their aspirations and values.

Persona

A detailed profile of a hypothetical or fictional character representing a key segment of a product’s target audience, used in marketing and product design to empathize with customer needs.