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

question 152

Multiple Choice

Under the direct write-off method of accounting for uncollectible accounts

• A) the allowance account is increased for the actual amount of bad debt at the time of write-off.
• B) a specific account receivable is decreased for the actual amount of bad debt at the time of write-off.
• C) balance sheet relationships are emphasized.
• D) bad debt expense is always recorded in the period in which the revenue was recorded.

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Definitions:

Negative Lead

An electrical connection that serves as the return path for current in a circuit, often marked with a minus (-) symbol or black color in electronics.

DMM

Digital Multimeter, an electronic measuring instrument that combines multiple measurement functions in one unit, such as voltage, current, and resistance.

Voltage Measurement

The process of determining the electrical potential difference between two points in an electric circuit.

Continuity

In electrical systems, the unbroken and complete path for current flow, crucial for the safe and effective operation of circuits.