Miles Uses the Allowance Method and Wrote Off the Account

question 120

Multiple Choice

Miles uses the allowance method and wrote off the account of James. Miles then received $559 as partial payment on the account of James. The journal entry to record the initial write-off includes a

• A) debit to Allowance for Doubtful Accounts
• B) credit to Cash
• C) debit to Accounts Receivable-James
• D) credit to Bad Debt Expense

---

Definitions:

Confidence Intervals

A range of values, derived from a data set, used to estimate the uncertainty surrounding an estimated parameter.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used for hypothesis testing and constructing confidence intervals.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, commonly denoted as alpha.

Statistically Significant

An observation or effect sufficiently large or important to be unlikely to have occurred by chance, as per a predefined threshold in hypothesis testing.