What General Ledger Account Is Debited to Write Off a Customer's

question 29

Multiple Choice

What general ledger account is debited to write off a customer's account as uncollectible if using the allowance method for uncollectible receivables?

• A) Bad Debts Expense
• B) Accounts Receivable
• C) Allowance for Doubtful Accounts
• D) Bad Debts Recovered

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Definitions:

Equal Status

A state or condition in which all participants or groups in a given situation are given the same rights, opportunities, and respect.

Social-Responsibility Norm

A societal expectation that people should help those who are dependent upon them or in need, fostering a sense of community and welfare.

Ingroup Bias

The tendency to favor and extend more positive judgments or treatment to members of one's own group over those outside the group.

Just-World Phenomenon

The cognitive bias to believe that the world is fundamentally fair, leading to attributing consequences to actions on a moral basis.