Langley Company Uses the Allowance Method

question 214

Multiple Choice

Langley Company uses the allowance method.During January 2016,Langley writes off a $500 customer account balance when it becomes clear that the customer will never pay.The entry to record the write-off will:

• A) decrease total assets by $500.
• B) decrease net income for 2016 by $500.
• C) decrease net accounts receivable by $500.
• D) not increase the expenses for 2016.

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Definitions:

Self-direction

Self-direction involves individuals taking initiative and responsibility for their actions and learning, guiding themselves towards their goals and personal growth.

Employee Involvement

This concept refers to strategies and practices that allow employees to contribute ideas, suggestions, and feedback concerning business operations, which can lead to improved performance and job satisfaction.

Modified Contingency

A concept in management where strategies are adjusted based on the situational variables and contexts involved.

Closed Systems

Refers to systems that are not influenced by or do not interact with their environment.