Under the Direct Write- Off Method, a Customer Who Doesn't

question 44

Multiple Choice

Under the direct write- off method, a customer who doesn't pay their bills is written off with what journal entry?

• A)Debit Lost revenue and credit Accounts receivable
• B)Debit Accounts receivable and credit Bad debts expense
• C)Debit Bad debts expense and credit Cash
• D)Debit Bad debts expense and credit Accounts receivable

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Definitions:

Poisson Distribution

A probability distribution that models the number of events occurring in a fixed interval of time or space, given the events occur with a known constant rate and independently of the time since the last event.

Post Office

A public institution responsible for the collection, sorting, transport, and delivery of mail.

Probability

The quantification of how likely an event is to occur, expressed as a number ranging between 0 and 1.

Bivariate Distributions

The probability distribution of two random variables, showing the relationship between them.