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.

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Definitions:

Defensive Self-esteem

A type of self-esteem characterized by a fragile sense of self that is highly vulnerable to external criticism and challenges, often leading to defensive reactions.

Rewards

Incentives or benefits given in response to an action or behavior, intended to reinforce or increase the likelihood of that behavior.

Productivity

The efficiency at which goods or services are produced, often measured as the amount of output per unit of input (like labor, time, or materials).

Passive

A state or quality of acceptance or submission without active response or resistance.