A Company Uses the Direct Write- Off Method to Account

question 68

Multiple Choice

A company uses the direct write- off method to account for uncollectable receivables. Which of the following is included in the entry to write off a bad debt?

• A)A debit to the customer's Account receivable
• B)A credit to the Allowance for doubtful debts
• C)A debit to Bad debts expense
• D)No entry is made to write off bad debts.

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Definitions:

First-borns

Individuals who are the oldest child in their family, often studied for their unique developmental and psychological traits compared to their siblings.

Only Child

A child who has no siblings and is the solitary offspring of their parents.

Share

To have or use something jointly with others, or to divide and distribute.

Compete

To take part in a contest or rivalry, striving to win or achieve something by surpassing others.