Which of the Following Entries Would Be Made to Write

question 69

Multiple Choice

Which of the following entries would be made to write off an uncollectible account receivable using the direct write-off method?

• A)Dr. Allowance for doubtful accounts |Cr. Accounts receivable
• B)Dr. Accounts receivable | Cr. Bad debt expense
• C)Dr. Sales | Cr. Allowance for doubtful accounts
• D)Dr. Sales | Cr. Accounts receivable
• E)Dr. Bad debt expense | Cr. Accounts receivable

---

Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually as a distribution of profits.

Common Stock

A type of equity security that represents ownership in a corporation, providing voting rights and a share in the company's profits via dividends.

Book Value Per Share

A financial measure that divides a company's net asset value less any intangible assets and liabilities by the number of outstanding shares.

Par Value

The face value of a security as stated by the issuing company, which may or may not reflect its market value.