If the Allowance Method of Accounting for Doubtful Receivables Is

question 79

Multiple Choice

If the allowance method of accounting for doubtful receivables is used, what account is credited in the entry to write off a customer's account as uncollectible?

• A)allowance for doubtful accounts
• B)accounts receivable
• C)bad-debt expense
• D)sales returns and allowances

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Definitions:

Buyers

Individuals or entities that purchase goods or services for personal use or for resale.

Sellers

Individuals or businesses that provide goods or services to consumers in exchange for payment.

Tax

A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund public expenditures.

Corporations' Profits

The financial earnings that remain for a corporation after all expenses, taxes, and costs have been deducted from total revenue.