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

question 150

Multiple Choice

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

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

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Definitions:

Operating Expenses

Costs associated with running a business's core operations on a day-to-day basis, excluding the cost of goods sold.

Product Costs

Costs that are directly associated with the production of goods, including materials, labor, and manufacturing overhead.

Product Costs

All costs incurred to acquire or produce a product that is intended for sale, including direct materials, direct labor, and manufacturing overhead.

Conversion Costs

Expenses related to converting raw materials into finished goods, typically including labor and manufacturing overhead.