A Company Uses the Allowance Method and Has Determined a Customer's

question 90

Multiple Choice

A company uses the allowance method and has determined a customer's bill for $2,000 must be written off.The journal entry to record the write off is:

• A)
• \[\begin{array} { | c | l | }
• \hline\text { Allowance for Doubtful Accounts } & \$ 2,000 \\
• \hline \text { Bad Debt Expense } & \$ 2,000 \\
• \hline
• \end{array}\]
• B)
• \[\begin{array} { | r | l l | }
• \hline\text { Allowance for Doubtful Accounts } & \$ 2,000 & \\
• \hline \text { Accounts Receivable } & \$ 2,000 \\
• \hline
• \end{array}\]
• C)
• \(\begin{array}{|l|l|}
• \hline \text { Accounts Receivable }&\$ 2,000 \\
• \hline \text { Allowance for Doubtful Accounts }&\$ 2,000\\\hline
• \end{array} \)
• D)
• \(\begin{array}{|l|l|}
• \hline\text { Bad Debt Expense }&\$2,000 \\
• \hline \text { Allowance for Doubtful Accounts }&\$2,000\\\hline
• \end{array} \)

Explain the impact of environmental versus biological influences on personality.

Understand the concept of reciprocal determinism and its application to personality theory.

Describe how biological explanations, like the arousal theory, explain personality differences.

Identify and understand various approaches to studying and assessing personality.

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Definitions:

Systematic Risk

A type of risk that is associated with the overall market or a particular market segment, often called market risk.

Expected Return

The average amount of profit or loss one can anticipate receiving on an investment, accounting for all possible outcomes.

Incremental Risk

The additional risk that an investment or action brings to an investor's or company's overall risk profile.

Risk-Free Rate

The rate of return on an investment with no risk of financial loss, often represented by the yield on government Treasury bills.