Under the Direct Write-Off Method,the Entry to Write Off a Customer's

question 46

Multiple Choice

Under the direct write-off method,the entry to write off a customer's account would include a debit to:

• A)Bad Debt Expense and a credit to Allowance for Doubtful Accounts.
• B)Bad Debt Expense and a credit to Accounts Receivable.
• C)Write-off Expense and a credit to Accounts Receivable.
• D)Sales and a credit to Accounts Receivable.

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Definitions:

Antitrust Laws

Legislation designed to prevent monopolies and promote competition among businesses, ensuring fair market practices.

Anti-Chain-Store Act

Legislation aimed at limiting or regulating the expansion and operation of chain stores to protect local businesses and maintain market competition.

Indirect Price Discrimination

A pricing strategy where different prices are charged for the same product or service based on characteristics other than the customer's willingness to pay.

Direct Price Discrimination

The practice of charging different prices to different consumers for the same product or service, based directly on the willingness to pay of each customer.