Under the Direct Write-Off Method,what Journal Entry Is Prepared When

question 129

Multiple Choice

Under the direct write-off method,what journal entry is prepared when an account is determined to be worthless or uncollectible?

• A)debit Allowance for Uncollectible Accounts and credit Accounts Receivable
• B)debit Accounts Receivable and credit Allowance for Uncollectible Accounts
• C)debit Uncollectible-Account Expense and credit Allowance for Uncollectible Accounts
• D)debit Uncollectible-Account Expense and credit Accounts Receivable

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Definitions:

Managerial Control

A theory of corporate management that favors insulating managers from shareholders by limiting the shareholders’ power to vote and by making it difficult for the shareholder to sue managers.

Outstanding Shares

Represents the total number of shares of a corporation's stock that are currently owned by all shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s insiders.

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability protection of a corporation.

Partnership

An association of two or more persons to carry on a business for profit.