Under the Allowance Method of Recognizing Uncollectible Accounts, the Entry

question 18

Multiple Choice

Under the allowance method of recognizing uncollectible accounts, the entry to write off an uncollectible account

• A) increases the allowance for uncollectible accounts.
• B) has no effect on the allowance for uncollectible accounts.
• C) has no effect on net income.
• D) decreases net income.

---

Definitions:

Respondeat Superior

A legal doctrine holding an employer or principal legally responsible for the wrongful actions of an employee or agent, if such actions occur within the scope of employment or representation.

Implied Authority

The power of an agent to perform acts which are reasonably necessary to accomplish the purpose of an organization.

Express Authority

The power explicitly given to an agent or representative through a contract or agreement to perform certain actions.

Agent

An individual or entity authorized to act on behalf of another (the principal) in dealings with third parties.