Under the Direct Write-Off Method, Uncollectible Accounts Expense Is Recognized

question 161

Multiple Choice

Under the direct write-off method, uncollectible accounts expense is recognized

• A)in an adjusting entry at the end of the accounting period.
• B)when the allowance account has a zero balance.
• C)when an account is determined to be uncollectible.
• D)in a closing entry at the end of the accounting period.

---

Definitions:

Donor's Gift

A voluntary conveyance of money, goods, or services from an individual or organization, without the expectation of direct compensation but often with philanthropic intentions.

Internal Revenue Code

The Internal Revenue Code is the comprehensive set of tax laws created by the United States federal government, overseeing federal tax obligations.

501(c)(3) Status

A tax designation in the United States for nonprofit organizations that exempts them from federal income taxes, pertaining to charitable, religious, educational, or scientific purposes.

Tax-Exempt

Income or transactions that are legally exempt from tax by the government, including certain types of bonds and nonprofit organization earnings.