What Are the Two Methods of Accounting for Bad Debts

question 70

Multiple Choice

What are the two methods of accounting for bad debts?

• A) Receivable reduction and bad debt methods
• B) Direct write-off and allowance methods
• C) Allowance and bad debt methods
• D) Direct write-off and receivable reduction methods

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Definitions:

Creativity

The ability to produce original and valuable ideas or solutions by thinking and acting in ways different from the norm.

Job Burnout

A state of physical or emotional exhaustion due to prolonged stress or dissatisfaction in the workplace.

Mental Exhaustion

A state of extreme mental fatigue caused by prolonged cognitive activity, stress, or overwork.

Incapacitating

Rendering someone or something unable to function, act, or move effectively; disabling.