Under the Direct Write-Off Method of Accounting for Uncollectible Accounts

question 215

Multiple Choice

Under the direct write-off method of accounting for uncollectible accounts Bad Debt Expense is debited

• A) when a credit sale is past due.
• B) at the end of each accounting period.
• C) whenever a pre-determined amount of credit sales have been made.
• D) when an account is determined to be uncollectible.

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Definitions:

Interval Estimate

A type of estimate that provides a range of values within which a population parameter is expected to lie, often associated with a confidence level.

Efficient

Refers to achieving maximum productivity with minimum wasted effort or expense.

Unbiased

A term used in statistics to describe an estimate or model that is accurate and not skewed by any factors.

Point Estimate

A single value given as an estimate of a population parameter that is of interest, usually derived from sample data.