Kata Company Uses the Allowance Method

question 210

Multiple Choice

Kata Company uses the allowance method.On May 1,Kata wrote off a $22,000 customer account balance when it becomes clear that the particular customer will never pay.The journal entry to record the write-off on May 1 would include which of the following?

• A)Debit to Bad Debt Expense and credit to Allowance for Doubtful Accounts.
• B)Debit to Accounts Receivable and credit to Allowance for Doubtful Accounts.
• C)Debit to Allowance for Doubtful Accounts and credit to Bad Debt Expense.
• D)Debit to Allowance for Doubtful Accounts and credit to Accounts Receivable.

Recognize the benefits and challenges of developing long-term relationships with suppliers.

Identify key strategies in supply-chain management including many-suppliers, few suppliers, vertical integration, and keiretsus.

Comprehend the significance of make-or-buy decisions in a firm's supply-chain strategy.

Understand the role of integration strategies such as backward and forward integration in supply-chain management.

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Definitions:

Pure Monopolies

Market situations where a single company or entity exclusively controls the supply of a particular good or service.

Policy Options

A range of strategies or actions that governments or organizations can consider to address specific issues or achieve desired outcomes.

Price Discrimination

The approach of a single supplier offering the same or similar products or services at diverse pricing points in separate markets.

Consequences

Consequences refer to the results or outcomes of actions, decisions, or policies, which can be foreseen or unforeseen, and beneficial or detrimental.