Which of the Following Entries Would Be the Appropriate Entry

question 91

Multiple Choice

Which of the following entries would be the appropriate entry for writing off an uncollectible account receivable under the allowance method?

• A)Dr.Bad Debt Expense Cr.Accounts Receivable
• B)Dr.Sales Cr.Accounts Receivable
• C)Dr.Accounts Receivable Cr.Bad Debt Expense
• D)Dr.Allowance for Doubtful Accounts Cr.Accounts Receivable

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Definitions:

Value Basis

A method for assessing the value of assets, typically the original cost of the asset adjusted for factors such as depreciation.

Lumber Mill

A facility where logs are cut into timber, undergoing processes from debarking to sawing and sometimes further processing.

Board Feet

A volume measurement used in the lumber industry, equivalent to a piece of wood that is one foot long, one foot wide, and one inch thick.

Responsibility Accounting System

An accounting system that measures the results of each responsibility center and relates them to managers responsible for those centers.