The Entry to Write Off an Account Receivable Under the Allowance

question 55

Multiple Choice

The entry to write off an account receivable under the allowance method will ________.

• A) reduce net income
• B) have no effect on net income
• C) increase total assets
• D) increase net income

---

Definitions:

Utility Function

A representation of how individual preferences are ranked for different bundles of goods.

Income

The financial gain earned or received by an individual, household, or entity, typically measured on a monthly or yearly basis through wages, dividends, or other earnings.

Price

The financial cost of acquiring a good, service, or asset.

Apples

Edible fruits from the species Malus domestica, known for their sweet to tart flavor and use in a variety of culinary dishes and products.