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:

Reference Group

A reference group is composed of people against whom an individual evaluates his or her situation or conduct.

Evaluative Group

A group used as a reference point for assessing or making judgments about something or someone.

Formal Organizations

Secondary groups designed to achieve explicit objectives.

Secondary Groups

Social groups characterized by impersonal, formal, and instrumental relationships, often focused on a specific goal or task.