The Journal Entry to Write Off a Customer's Account Under

question 75

Multiple Choice

The journal entry to write off a customer's account under the direct write-off method is:

• A)Bad Debt Expense, debit; Allowance for Uncollectible Accounts, credit.
• B)not required.
• C)Cash, debit; Accounts Receivable/customer name, credit.
• D)Bad Debt Expense, debit; Accounts Receivable/customer name, credit.

---

Definitions:

Information Processing Errors

Mistakes made in analyzing and interpreting information which can lead to incorrect conclusions and potentially suboptimal decision-making.

True Probabilities

The actual likelihood of an event occurring, as opposed to estimated probabilities based on theoretical models or assumptions.

Information Processing

The process of gathering, storing, and manipulating data to produce meaningful information.

Fully Rational

Describes an economic theory assumption that individuals always make decisions that provide them with the highest amount of personal satisfaction or utility, based on full knowledge and a consistent evaluation of available information.