Removing an Uncollectible Account and Its Corresponding Allowance from the Accounting

question 219

Multiple Choice

Removing an uncollectible account and its corresponding allowance from the accounting records is called:

• A)a write-off.
• B)a write-up.
• C)double entry accounting.
• D)elimination accounting.

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Definitions:

Voluntary

A term indicating that an action or process is undertaken by someone's own choice or consent, without external compulsion.

Mandatory

Something that is required or obligatory by law or rules.

Chilling Effect

A chilling effect occurs when the exercise of rights or freedoms is discouraged by the threat of legal sanction or other negative consequences, leading to self-censorship or avoidance of certain actions.

Arbitration

A method of dispute resolution where an impartial third party, the arbitrator, makes a binding decision to resolve a dispute outside of court.