When a Specific Account Receivable Is Written Off as Uncollectible

question 91

True/False

When a specific account receivable is written off as uncollectible under the direct write off method, it decreases the Allowance for Doubtful Accounts.

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Definitions:

Bank Account

A financial account maintained by a bank or other financial institution for the deposit and withdrawal of money by the account holder.

Check

A written, dated, and signed instrument that contains an unconditional order directing a bank to pay a definite sum of money to a payee.

Writing A Check

The act of completing a check form to make a payment from a checking account to a person or entity.

Must Be Written

Indicates that specific information or instructions need to be documented in writing, typically for legal, safety, or record-keeping reasons.