If the Direct Write-Off Method Is Used for Uncollectible Receivables

question 47

Multiple Choice

If the direct write-off method is used for uncollectible receivables, what account is debited when writing off a customer's account?

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

Understand the role of cost reduction and efficiency increase in process reengineering.

Identify key characteristics of a work process as defined by Michael Hammer.

Comprehend what constitutes a work process and its value generation for the customer.

Understand the importance of value and supply chain management in operations management.

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Definitions:

Marginal Cost

The rise in expense associated with the production of an extra unit of a product or service.

Benefits To Consumers

Refers to the advantages or improvements in well-being and satisfaction that consumers experience from purchasing and using goods and services.

Externalities

Monetary consequences that reach beyond the primary parties, impacting others positively or negatively.

Tax

An essential fiscal demand or variant form of duty exacted from a taxpayer by a governmental institution, intended to sustain government expenditure and miscellaneous public financial requirements.