If the Direct Write-Off Method of Accounting for Uncollectible Receivables

question 73

Multiple Choice

If the direct write-off method of accounting for uncollectible receivables is used,what general ledger account is debited to write off a customer's account as uncollectible?

• A)Bad Debts Recovered
• B)Bad Debts Expense
• C)Accounts Receivable
• D)Interest Expense

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Definitions:

Day Care Center

A facility that provides care and education for children while their parents or guardians are at work or otherwise engaged.

Vividness Effect

Occurs during decision-making when some salient or vivid facts attract our attention regardless of their actual value as evidence.

Probabilistic Thinking

The ability to understand and reason with probabilities, recognizing that most predictions about the future involve some level of uncertainty.

Placebo Effect

Occurs when individuals receiving a placebo (a “dummy” version of a treatment) experience improvement in their symptoms and attribute the improvement to the placebo.