When a Company Is Using the Direct Write- Off Method

question 83

Multiple Choice

When a company is using the direct write- off method, and an account is written off, the journal entry consists of a:

• A)credit to Accounts receivable and a debit to Interest expense.
• B)debit to Accounts receivable and a credit to Cash.
• C)debit to the Allowance for doubtful debts and a credit to Accounts receivable.
• D)credit to Accounts receivable and a debit to Bad debts expense.

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Definitions:

Product Specialization

A strategy focusing on the production and sale of a limited range of products or services to fulfill specific consumer needs and preferences.

Full Market Coverage

A strategy where a company aims to serve all customer segments in the market with its product offerings to maximize reach and sales.

Differentiated Marketing

A marketing strategy in which a company targets multiple market segments with specific offerings for each.

Organizational Complexity

Refers to the degree of various elements and the extent of differentiation within an organization that affects its operations and decision-making.