When an Account Becomes Uncollectible and Must Be Written Off

question 59

Multiple Choice

When an account becomes uncollectible and must be written off,

• A) Allowance for Doubtful Accounts should be credited.
• B) Accounts Receivable should be credited.
• C) Bad Debts Expense should be credited.
• D) Sales should be debited.

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Definitions:

Belongingness

The human emotional need to be an accepted member of a group, whether it is family, friends, co-workers, or a larger entity.

Physiological Needs

These are basic physical requirements for human survival, such as food, water, and shelter, as ranked at the bottom of Maslow's hierarchy of needs.

Self-Actualization

A psychological state or process of realizing and fulfilling one's talents, capacities, and potentialities.

Lowest Level

The minimum or most basic tier in a hierarchy or scale.