Open Range Foods Writes Off a Bad Debt of $400

question 56

Multiple Choice

Open Range Foods writes off a bad debt of $400 on a specific customer account. The journal entry for this transaction under the allowance method would include:

• A) a debit to Bad Debts Expense.
• B) a credit to Bad Debts Expense.
• C) a credit to Allowance for Doubtful Accounts.
• D) a debit to Allowance for Doubtful Accounts.

---

Definitions:

Color-Blind

A term often used to describe a vision deficiency in distinguishing colors, but also metaphorically to indicate a lack of discrimination based on race or ethnicity.

Newborns

Infants who are in the first few hours to weeks of life, characterized by rapid physical and neurological development.

Flavors

The combined sensation of taste and smell perception derived from a substance in the mouth.

Young Adolescents

Individuals who are in the early phase of adolescence, typically between the ages of 10 and 14, experiencing rapid physical, cognitive, and emotional changes.