The Direct Write-Off Method Records Uncollectible-Account Expense

question 90

Multiple Choice

The direct write-off method records Uncollectible-Account Expense:

• A)in the accounting period each sale occurs.
• B)at the end of the accounting period.
• C)when the specific account receivable is determined to be uncollectible.
• D)in the accounting period one year after the sale date.

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Definitions:

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.

Table Factors

Mathematical factors used in tables to simplify calculations for things like present values, loan repayments, or depreciation rates.

Present Values

The discounted value of an amount of money at a specific future date, considering a particular interest rate.