The Journal Entry to Write Off an Account Judged to Be

question 101

Multiple Choice

The journal entry to write off an account judged to be uncollectible under the allowance would include a credit to:

• A)Sales.
• B)Accounts Receivable.
• C)Allowance for Doubtful Accounts.
• D)Bad Debts Expense.

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Definitions:

Variable Costing

This accounting method includes only variable costs - costs that vary with production level - in the calculation of the cost of goods sold.

Unit Product Cost

The total cost associated with creating one unit of product, including materials, labor, and overhead.

Variable Costing

An accounting method where only the variable production costs are allocated to the product, while fixed costs are treated as period costs.

Net Operating Income

The total income from operations of a company before taxes and interest deductions.