Lowery Co Uses the Direct Write-Off Method of Accounting for Uncollectible

question 112

Multiple Choice

Lowery Co. uses the direct write-off method of accounting for uncollectible accounts receivable. Lowery has a customer whose accounts receivable balance has been determined to likely be uncollectible. The entry to write off this account would be

• A) debit Allowance for Doubtful Accounts; credit Accounts Receivable
• B) debit Accounts Receivable; credit Notes Receivable
• C) debit Bad Debt Expense; credit Allowance for Doubtful Accounts
• D) debit Bad Debt Expense; credit Accounts Receivable

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Definitions:

Conserve Water

The practice of using water efficiently to reduce unnecessary waste.

Public Commitments

Declarations or promises made by individuals or organizations in front of others, often to be held accountable for achieving certain goals or adhering to specific values or courses of action.

Creditors

Individuals or entities that lend money or extend credit to others, expecting repayment in the future along with any agreed-upon interest or fees.

Owners

Individuals or entities that have legal possession and control over a business or property.