No Allowance for Doubtful Accounts Is Used for the

question 35

Multiple Choice

No allowance for doubtful accounts is used for the

• A)direct writeoff method.
• B)percentage of credit sales method.
• C)allowance method.
• D)aging of accounts receivable method.

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Definitions:

Consideration

Something of value exchanged by parties in a contract that is necessary for the agreement to be legally binding.

Existing Duty

An obligation that is already legally required or expected of a person or entity.

Verbal Agreement

An agreement made through spoken words between parties that can be legally binding, but is harder to prove than a written contract.

Enforceable

Capable of being imposed or carried out by legal process or authority.