A Company Recognizes Bad Debts by Writing Off the Receivable

question 88

Multiple Choice

A company recognizes bad debts by writing off the receivable only when it becomes certain that the customer will not be paying.What is this method called?

• A)Direct writeoff method
• B)Allowance method
• C)Net realizable value method
• D)Percentage-of-credit-sales method

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Definitions:

Transient Ischemic Attack

Temporary interruption of blood flow in the brain caused by small clots closing off blood vessels, may also be referred to as a TIA.

Warning Stroke

Also known as a transient ischemic attack, it is a temporary blockage of blood flow to the brain, indicating the potential for a future stroke.

Blood Flow

The continuous circulation of blood through the cardiovascular system, delivering oxygen and nutrients to and removing waste products from tissues.

Congestive Heart Failure

A chronic condition wherein the heart's ability to pump blood is inadequate, leading to the accumulation of fluid in lungs and other body parts.