Which of the Following Entries Would Be the Appropriate Entry

question 91

Multiple Choice

Which of the following entries would be the appropriate entry for writing off an uncollectible account receivable under the allowance method?

• A)Dr.Bad Debt Expense Cr.Accounts Receivable
• B)Dr.Sales Cr.Accounts Receivable
• C)Dr.Accounts Receivable Cr.Bad Debt Expense
• D)Dr.Allowance for Doubtful Accounts Cr.Accounts Receivable

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Definitions:

Excess Burden

The cost to society created by market inefficiency, particularly through the misallocation of resources or distortions in the market.

Excess Burden

The cost to society created by market inefficiency, often associated with the distortionary effects of taxes and subsidies.

Tax Revenue

The income that is gained by governments through taxation, used to fund public services and government obligations.

Excess Burden

The economic loss that society suffers due to market inefficiencies or taxes beyond the collected tax revenue.