Marilyn Corporation Uses the Allowance Method

question 6

Multiple Choice

Marilyn Corporation uses the allowance method.Marilyn writes off a $560 customer account balance when it becomes clear that the customer will never pay.Marilyn should debit:

• A)Bad Debt Expense and credit Accounts Receivable for $560.
• B)Allowance for Doubtful Accounts and credit Accounts Receivable for $560.
• C)Bad Debt Expense and credit Cash for $560.
• D)Accounts Receivable and credit Bad Debt Expense for $560.

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Definitions:

Friends

People known for some time and with whom we share common interests and/or hobbies.

Salespeople

Individuals who sell products or services to customers, focusing on meeting customer needs and closing sales transactions.

Endless Chain

A sales technique where current customers are used to generate leads for future sales by asking for referrals to new prospects.

Gutter Products

Items designed for the management and diversion of rainwater away from a building to protect its structure.