Open Range Foods Writes Off a Bad Debt of $400

question 61

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 direct write off method would include:

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

---

Definitions:

Optimal Value

The most favorable or advantageous value that can be achieved under given constraints, often used in optimization problems.

Dual Production Problem

A situation in operational research where two or more products are produced using limited resources, and the optimal allocation of these resources needs to be determined.

Production Function

A mathematical model that describes the relationship between inputs used in production and the output produced from those inputs.

Labor Hired

The quantity of work force employed by businesses to perform various tasks, measured in worker units or hours.