Under the Direct Write-Off Method, the Entry to Write Off

question 124

Multiple Choice

Under the direct write-off method, the entry to write off an uncollectible account would include a:

• A)credit to bad-debt expense.
• B)credit to allowance for doubtful accounts.
• C)debit to allowance for doubtful accounts.
• D)credit to the customer's account receivable.

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Definitions:

Stimulus Motives

Drives that are unlearned and arise from basic biological needs or from the environment, prompting spontaneous activity.

Drive Reduction

A theory positing that behavior is motivated by the desire to reduce internal drives, such as hunger or thirst, to achieve a state of homeostasis.

Hypothalamus

A small but crucial part of the brain responsible for hormonal control, regulation of body temperature, and maintaining homeostasis.

Blood Sugar Level

A measure of the amount of glucose present in the blood, which is a critical aspect of metabolic health and is closely regulated in the human body.