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:

Remittances

Money sent by migrants to their home country, often to family members, contributing to the receiving country's economy.

Illegal Immigrants

Individuals who enter or reside in a country without the permission or legal authorization from that country's government.

Recession

A period of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in two successive quarters.

Developing Economies

Economies characterized by low income, limited industrialization, and moderate to high population growth. These economies are in the process of experiencing significant structural changes and economic development.